Mighty Corporation manufactures end tables. Each end table requires .50 direct labor hours in its production. Mighty Corporation has a direct labor rate of $15 per direct labor hour. The production budget shows that Mighty Corporation plans to produce 1,000 end tables in March and 1,100 end tables in April. What is the total combined direct labor cost that should be budgeted for March and April?

Question

Quizplus · Accepted Answer

To calculate the total combined direct labor cost for March and April, we need to first calculate the total direct labor hours required for producing 1,000 end tables in March and 1,100 end tables in April.

For March: 
Direct labor hours = Number of end tables x Direct labor hours per end table
Direct labor hours = 1,000 x 0.50
Direct labor hours = 500

For April: 
Direct labor hours = Number of end tables x Direct labor hours per end table
Direct labor hours = 1,100 x 0.50
Direct labor hours = 550

Total direct labor hours for March and April = 500 + 550 = 1,050

Now we can calculate the total combined direct labor cost for March and April as:

Total direct labor cost = Total direct labor hours x Direct labor rate per hour
Total direct labor cost = 1,050 x $15
Total direct labor cost = $15,750

Therefore, the correct answer is C) 15,750.

Mighty Corporation Manufactures End Tables