Joycups is currently manufacturing ice-cream cones. The company requires 7 minutes of direct labor (DL) time to manufacture 1 cone, and the direct labor rate is $12 per hour. What is the total budgeted DL cost to produce 5,000 cones? (Do not round values during intermediate calculations.)
A) $4,200
B) $5,000
C) $7,000
D) $8,571

Question

Quizplus · Accepted Answer

Budgeted DL Cost = Budgeted DL Hours Required × Budgeted DL Cost per Hour = (5,000 × 7/60) × $12 = $7,000.

Joycups Is Currently Manufacturing Ice-Cream Cones