Staci Pearce Is Preparing a Direct Labor Budget

question 123

Multiple Choice

Staci Pearce is preparing a direct labor budget.Her sales budget shows total sales units of 15,000 and sales dollars of $45,000.The direct materials purchases budget shows materials to be purchased of 25,000 units and budgeted purchases cost of $18,750.The production budget indicates a total of 25,000 units to be produced.Standard direct labor hours per unit is .50 and the standard average wage rate is $10.What is budgeted direct labor cost?

• A)$125,000
• B)$143,750
• C)$188,750
• D)$250,000

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Definitions:

Consumer Surplus

The divergence between what consumers are willing and have the financial capability to pay for a good or service, and what they really pay.

Willingness to Pay

The maximum price at which a consumer will buy a good or service.

Basketball Sneakers

Athletic shoes designed specifically for playing basketball, offering features such as enhanced grip, ankle support, and shock absorption.

Consumer Surplus

The difference between the maximum price consumers are willing to pay and the actual price they do pay.