Smith Corporation Makes and Sells a Single Product Called a Pod

question 123

Multiple Choice

Smith Corporation makes and sells a single product called a Pod. Each Pod requires 2.7 direct labor-hours at $10.90 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. Smith Corporation is preparing a Direct Labor Budget for the second quarter of the year.In June the company has budgeted to produce 23,300 Pods. Budgeted direct labor costs incurred in June would be: (Round your intermediate calculations to 2 decimal places.)

• A) $870,763
• B) $685,719
• C) $314,880
• D) $253,970

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