North Line Company Manufactures a Product Requiring 0 If It Takes Two Direct Labour Hours to Produce Each
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: 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.
Correct Answer:
Verified
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