Flagstaff Company has budgeted production units of 9,200 for July and 9,400 for August. The direct labor requirement per...
Flagstaff Company has budgeted production units of 9,200 for July and 9,400 for August. The direct labor requirement per unit is 0.40 hours. Labor is paid at the rate of $19 per hour. The total cost of direct labor for the month of August is:
Multiple Choice
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$69,920.
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$3,760.
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$71,440.
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$3,680.
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$141,360.
Homework Answers
Labor cost per unit=0.40 hours/unit*$19/hour=$7.6/unit
cost of direct labor for the month of August=($7.6/unit*9400 units)
which is equal to
=$71440.
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