Smith Corporation Makes and Sells a Single Product Called a Pod

question 49

Multiple Choice

Smith Corporation makes and sells a single product called a Pod. Each Pod requires 1.4 direct labor-hours at $9.60 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 22,000 Pods. Budgeted direct labor costs incurred in June would be:

• A) $470,400
• B) $295,680
• C) $240,000
• D) $211,200

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