Question

Zhang Industries budgets production of 300 units in June and 310 units in July. Each unit requires 1.5 hours of direct labor. The direct labor rate is $14 per hour. The indirect labor rate is $21 per hour. Compute the budgeted direct labor cost for July.
a. $6,300.
b. $6,510.
c. $9,450.
d. $9,765.
e. $16,275.

Answer 1

Answer:

b. $6,510.

Explanation:

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

Budgeted Direct Labor cost is

= Direct Labor cost per hour × Number of hours

= 310 units  × 1.5 hours × $14

= $6,510

hence, the correct option is b. $6,510

We simply applied the above formula and the same is to be considered

Therefore all other options are incorrect