Peter, a part-time intern in an enterprise, estimates that budgeted units of production for the next month need to be 5,000 units to achieve the targeted sales. The production of one unit requires 0.30 direct labor (DL) hours, and the hourly rate of labor is $10. Based on the given data, the total budgeted DL hours required and total budgeted DL cost are
A) 1,000 and $15,000 respectively.
B) 1,500 and $15,000 respectively.
C) 1,500 and $22,500 respectively.
D) 5,000 and $10,000 respectively.

Question

Quizplus · Accepted Answer

Budgeted DL Hours Needed = Budgeted Units to be Produced × Quantity of DL Hours per Unit = 5,000 × 0.30 = 1,500; Budgeted DL Cost = Budgeted DL Hours Needed × Budgeted DL Cost per Hour = 1,500 × $10 = $15,000.

Peter, a Part-Time Intern in an Enterprise, Estimates That Budgeted