Question

The Gerald Corporation makes and sells a single product called a Clop. Each Clop requires 1.1 direct labor-hours at $8.20 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. The company is preparing a Direct Labor Budget for the first quarter of the year. If the company has budgeted to produce 20,000 Clops in January, then the budgeted direct labor cost for January is:_________

Answer 1

$180,400

Step-by-step explanation:

The computation of the budgeted direct labor cost is shown below:

= Number of budgeted production clops × required direct labor hours × direct labor hour rate

= 20,000 Clops × 1.1 direct labor hours × $8.20

= $180,400

Simply we multiply the budgeted production with the required direct labor hours and direct labor hour rate so that the budgeted direct labor cost can be computed