Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August.The direct labor requirement per unit is 0.50 hours.Labor is paid at the rate of $21 per hour.The total cost of direct labor for the month of August is:

Question

Quizplus · Accepted Answer

To calculate the direct labor cost for August, we need to first find the total number of direct labor hours required for August.

Direct labor hours required for August = 8,100 units x 0.50 hours per unit = 4,050 direct labor hours

The total cost of direct labor for August can now be calculated by multiplying the total direct labor hours by the labor rate:

Total direct labor cost for August = 4,050 direct labor hours * $21 per hour = $85,050

Therefore, the answer is C.

Flagstaff Company Has Budgeted Production Units of 7,900 for July