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Chang Inc. has developed the following units costs for the production of one of its products, based on a normal activity of 10,000 units per month:

-What is the total amount of direct labor budgeted for a month in which production is expected to be 11,000 units?

Question

Use the following to answer questions:
Chang Inc. has developed the following units costs for the production of one of its products, based on a normal activity of 10,000 units per month:
 
-What is the total amount of direct labor budgeted for a month in which production is expected to be 11,000 units?

Quizplus · Accepted Answer

The total amount of direct labor budgeted for a month can be calculated if we know the direct labor cost per unit or the total hours of labor required along with the cost per hour. Without specific information on the direct labor cost per unit or the hours and rate of pay, it's not possible to accurately determine the correct answer from the options provided. However, based on the information typically required to calculate a direct labor budget (units to be produced, labor hours per unit, and labor cost per hour), the correct answer would be determined by applying these factors. Since no specific calculation details were provided in the question, the selection of option C is arbitrary and intended for illustrative purposes in this context.

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