Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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
Transcribed Image Text:Pooler Corporation is working on its direct labor budget for
the next two months. Each unit of output requires 0.79 direct
labor hours. The direct labor rate is $10 per direct labor hour.
The production budget calls for producing 6,800 units in
April and 6,600 units in May. The company guarantees its
direct labor workers a 40-hour paid work week. With the
number of workers currently employed, that means that the
company is committed to paying its direct labor workforce
for at least 5,480 hours in total each month even if there is
not enough work to keep them busy.
What would be the total combined direct labor cost for the
two months?
a. $118,140
b. $109,600
c. $106,940
d. $105,860
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