Forty Winks Corporation manufactures night stands. The production budget shows that Forty Winks Corporation plans to produce 1,200 night stands in March and 1,050 night stands in April. Each night stand requires .50 direct labor hours in its production. Forty Winks Corporation has a direct labor rate of $12 per direct labor hour. 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, we need to find out the total direct labor hours required for the production of 1,200 night stands in March and 1,050 night stands in April.

For March:
Direct labor hours needed = 1,200 night stands x 0.50 direct labor hours per night stand
= 600 direct labor hours

For April:
Direct labor hours needed = 1,050 night stands x 0.50 direct labor hours per night stand
= 525 direct labor hours

Therefore, the total direct labor hours required for March and April combined is:
Total direct labor hours = 600 + 525
= 1,125 direct labor hours

Multiplying the total direct labor hours by the direct labor rate gives us the total combined direct labor cost:
Total direct labor cost = 1,125 direct labor hours x $12 per direct labor hour
= $13,500

Therefore, the best choice is D) 13,500.

Forty Winks Corporation Manufactures Night Stands