Question

Sperling Company's master budget shows expected sales of 10,000 units and expected production of 11,000 units for the month of March. Each unit requires 1/2 hour of direct labor. The direct labor rate is $15.00 per hour. Calculate the expected total direct labor cost for the month of March.$75,000$165,000$150,000$82,500

Answer 1

$82,500

Step-by-step explanation:

To calculate the direct labor cost that Sperling Company must record for the month of March we must multiply the total number of units produced times the number of hours required for producing one unit times the labor cost of one hour.

= 11,000 units x 0.5 hours per unit x $15 per hour = $82,500