Question

Zhang Industries budgets production of 250 units in June and 260 units in July. Each unit...

Zhang Industries budgets production of 250 units in June and 260 units in July. Each unit requires 1.5 hours of direct labor. The direct labor rate is $13.00 per hour. The indirect labor rate is $20.00 per hour. Compute the budgeted direct labor cost for July.

Multiple Choice

  • $7,500.

  • $4,875.

  • $7,800.

  • $5,070.

  • $12,870.

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Answer #1

Correct answer------------$5,070

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Direct labor Budget
For the month of July
Budgeted Production 260
Hours required per unit 1.5
Total Labor hours needed 390
Labor cost per Hour $ 13.00
Total cost of Direct labor $     5,070.00
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