Zhang Industries Budgets Production of 300 Units in June and 310

question 169

Multiple Choice

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 if $14 per hour.The indirect labor rate is $21.00 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.

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Definitions:

Cost of Goods Sold

Expenses directly linked to the production of a company's merchandise for sale, including both materials and labor costs.

Departments

Distinct areas or divisions within an organization, each dedicated to a specific function or purpose.

Dollar Gross Profit

The total amount of money a company makes after subtracting the costs directly associated with producing its goods or services.

Net Sales

The amount of sales revenue left after deducting sales returns, allowances, and discounts from the total gross sales.