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Webster Corporation is preparing a master budget for the first quarter of the year. The company...

Webster Corporation is preparing a master budget for the first quarter of the year. The company budgets production of 2,760 units in January, 2,640 units in February and 2,940 units in March. Each unit requires 0.5 hours of direct labor. The direct labor rate is $13 per hour. Compute the budgeted direct labor cost for the first quarter budget.

Multiple Choice

  • $51,480.

  • $54,210.

  • $108,420.

  • $102,960.

  • $41,700.

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Answer #1

Budgeted direct labor cost for quarter

= Total production * hours required * rate

= (2760+2640+2940)*0.5*13

= 54,210
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