Mighty Corporation manufactures end tables. Each end table requires .50 direct labor hours in its production. Mighty Corporation has a direct labor rate of $13 per direct labor hour. The production budget shows that Mighty Corporation plans to produce 600 end tables in March and 1100 end tables in April. What is the total combined direct labor cost that Mighty Corporation should budget in March and April?

Question

Quizplus · Accepted Answer

To find the total direct labor cost for March and April, we need to calculate the direct labor cost for each month separately and then add them together.

For March, Mighty Corporation plans to produce 600 end tables, and each table requires 0.50 direct labor hours, so 600 x 0.50 = 300 direct labor hours.

The direct labor rate is $13 per hour, so the direct labor cost for March is 300 x $13 = $3,900.

For April, Mighty Corporation plans to produce 1100 end tables, and each table requires 0.50 direct labor hours, so 1100 x 0.50 = 550 direct labor hours.

The direct labor rate is $13 per hour, so the direct labor cost for April is 550 x $13 = $7,150.

The total direct labor cost for March and April is $3,900 + $7,150 = $11,050.

Therefore, the best answer is C.

Mighty Corporation Manufactures End Tables