Question

Tracie Corporation manufactures and sells women's skirts. Each skirt (unit) requires 2.2 yards of cloth. Selected data from Tracie's master budget for next quarter are shown below: July August September 9,e00 11,000 13,eee 15,e00 Budgeted sales (in units) Budgeted production (in units) 10,000 12,500 Each unit requires 0.7 hours of direct labor, and the average hourly cost of Tracie's direct labor is $20. What is the cost of Tracie Corporation's direct labor in September?

Answer 1

Budgeted production	15,000
Labor hour required per unit	0.7
Total labor hours required (15,000*0.70)	10,500
Hourly rate	$ 20
Total labor cost for the month of September ($20*10,500)	$ 210,000

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