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Swinger’s Porch Swings Swinger’s Porch Swings makes custom porch swings The standard swing requires 10 linear...

Swinger’s Porch Swings
Swinger’s Porch Swings makes custom porch swings
The standard swing requires 10 linear feet of wood and 5 hours of labor
Customers can add cup holders and/or a stain before the swing is finished with a clear coat.
Adding cup holders requires 1 additional hour of labor and no additional direct materials
Adding stain requires $25 of stain per swing and 2 additional hour of labor.
Swings can be made of pine, oak or teak
Pine costs $5 per linear foot
Oak costs $12 per linear foot
Teak costs $15 per linear foot
Swing builders are paid $60/hour
Estimated monthly Direct Labor Hours are 430
Overhead is allocated based on direct labor dollars

Total indirect product costs are as follows:

Indirect Product Costs
Description of Cost Cost
Rent for the workshop $10,000
Depreciation on machinery $8,540
Indirect Materials $8,000
Indirect Labor $7,000

Job #3 is an order for 26 swings made of made of teak with cupholders but no stain.

What is the cost of Direct Labor for Job #3?

Group of answer choices

12,480

1,560

9,360

7,800

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution: Option C($ 9,360) is the correct answer: Computation of cost of direct labor for Job#3: Job #3 is an order for 26 w

Conclusion : From the above we can understand that OPTION C satisfies the given requirement in the question whereas remaining Options A,B, D do not satisfy the given requirement in question.

Thankyou !!!!!

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