Tracie Corporation manufactures and sells women's skirts.Each skirt (unit)requires 2.2 yards of cloth.Selected data from Tracie's master budget for next quarter are shown below: Each unit requires 0.8 hours of direct labor, and the average hourly cost of Tracie's direct labor is $18.What is the cost of Tracie Corporation's direct labor in September?

Question

Tracie Corporation manufactures and sells women's skirts.Each skirt (unit)requires 2.2 yards of cloth.Selected data from Tracie's master budget for next quarter are shown below:    Each unit requires 0.8 hours of direct labor, and the average hourly cost of Tracie's direct labor is $18.What is the cost of Tracie Corporation's direct labor in September?

Quizplus · Accepted Answer

To calculate the cost of direct labor, we need to know the number of units produced, which can be calculated as follows:

Number of units = Total yards of cloth / Yards of cloth per unit
Number of units = 66,000 / 2.2
Number of units = 30,000

Next, we can calculate the total hours of direct labor required as follows:

Total hours of direct labor = Number of units x Direct labor hours per unit
Total hours of direct labor = 30,000 x 0.8
Total hours of direct labor = 24,000

Finally, we can calculate the cost of direct labor as follows:

Cost of direct labor = Total hours of direct labor x Hourly cost of direct labor
Cost of direct labor = 24,000 x $18
Cost of direct labor = $432,000

Therefore, the correct answer is C) $187,200. Direct Labor Budget 11ea7998_5d72_4129_911b_4faea4440173_TB2627_00_TB2627_00

Tracie Corporation Manufactures and Sells Women's Skirts