Pooler Corporation Is Working on Its Direct Labor Budget for the Next

question 227

Multiple Choice

Pooler Corporation is working on its direct labor budget for the next two months.Each unit of output requires 0.15 direct labor-hours.The direct labor rate is $7.00 per direct labor-hour.The production budget calls for producing 6,500 units in April and 6,200 units in May.The company guarantees its direct labor workers a 40-hour paid work week.With the number of workers currently employed,that means that the company is committed to paying its direct labor work force for at least 1,000 hours in total each month even if there is not enough work to keep them busy.What would be the total combined direct labor cost for the two months?

• A) $13,825.00
• B) $13,335.00
• C) $14,000.00
• D) $13,510.00

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Definitions:

House's Path-Goal Leadership Theory

A theory that emphasizes how leaders can enhance employee satisfaction and performance by clarifying the paths to goals and removing obstacles to achievement.

Subordinates' Suggestions

Recommendations or advice given by lower-ranking employees to their superiors or the organization.

High-Exchange Relationship

A relationship characterized by mutual high levels of trust, support, and investment between parties, often resulting in beneficial outcomes for all involved.

Low-Exchange Relationship

A type of relationship in organizational settings where there is minimal personal connection and reciprocity between parties involved.