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North Line Company Manufactures a Product Requiring 0 If It Takes Two Direct Labour Hours to Produce Each

Question 25

Multiple Choice

North Line Company manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately $360 per ounce; the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent quarterly production budget:  July  August  September  Planned production in units 1,0001,100980\begin{array} { | l | c | c | c | } \hline & \text { July } & \text { August } & \text { September } \\\hline \text { Planned production in units } & 1,000 & 1,100 & 980 \\\hline\end{array} If it takes two direct labour hours to produce each unit and North Line's cost per labour hour is $15, direct labour cost for August would be budgeted at:


A) $16,500.
B) $30,000.
C) $31,200.
D) $33,000.
E) $34,800.

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