Question

6) Pooler Corporation is working on its output requires 0.15 direct labor-hours. The direct labor rate is production budget calls for producing 6,500 guarantees its direct labor workers a 40-hour paid currently employed, that means that the company is committed to force for at least 1,000 hours in total orking on its direct labor budget for the next two months. Each unit of direct labor rate is $7.00 per direct labor-hour. The for producing 6,500 units in April and 6,200 units in May. The company Tabor workers a 40-hour paid work week. With the number of workers company is committed to paying its direct labor work Teast 1,000 hours in total cach month even if there is not enough work to keep them y. What would be the total combined direct labor cost for the two months? A) $13,825.00 B) $13,335.00 C) $14,000.00 D) $13,510.00 minyarde

Answer 1

Answer	Option C
	Particulars	April	May
	No of units to be produced	6500	6200
	Labour hours required	0.15	0.15
		975	930
	Mimimum Total hours	1000	1000
	Rate per hour	7	7
		7000	7000
	Total	14000
	Estimated sales will not incur more than the fixed amount of hours that are available from the employees. Hence there is no extra variable cost to be incurred for the estimated production