Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August.The direct labor requirement per unit is 0.50 hours.Labor is paid at the rate of $21 per hour.The total cost of direct labor budgeted for the month of August is:

Question

Quizplus · Accepted Answer

To calculate the total cost of direct labor in August, we need to first calculate the total number of hours required for production:

8,100 units * 0.50 hours per unit = 4,050 total direct labor hours

Next, we can use the labor rate provided to calculate the total cost of these hours:

4,050 total direct labor hours * $21 per hour = $85,050

Therefore, the correct answer is choice C: $85,050.

Flagstaff Company Has Budgeted Production Units of 7,900 for July