Webster Corporation is preparing a master budget for the first quarter.The company budgets production of 2,680 units in January,2,600 units in February and 2,740 units in March.Each unit requires 0.6 hours of direct labor.The direct labor rate is $12 per hour.Compute the budgeted direct labor cost for the first quarter budget.
A)$56,160.
B)$57,744.
C)$96,240.
D)$93,600.
E)$48,120.

Question

Quizplus · Accepted Answer

The total units produced in the first quarter are 2,680 + 2,600 + 2,740 = 8,020 units. Each unit requires 0.6 hours of direct labor, so total labor hours are 8,020 * 0.6 = 4,812 hours. At $12 per hour, the total direct labor cost is 4,812 * $12 = $57,744.

Webster Corporation Is Preparing a Master Budget for the First