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It Takes 30 Minutes of Direct Labor Time to Make

Question 120

Multiple Choice

It takes 30 minutes of direct labor time to make one unit. Direct labor wages average $17 per hour. Variable overhead is applied at the rate of $5 per direct labor hour. Fixed overhead is budgeted at $56,500 per month.
-Refer to Figure 9-4. What is the budgeted production in units for November?


A) 100,000
B) 140,000
C) 121,000
D) 125,600
E) 139,000

Correct Answer:

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