Camden Products Inc Actual Production During November Was 1 300 Units and Actual

question 90

Multiple Choice

Camden Products Inc.manufacturers travel accessories.The company's controller has prepared the following static budget of one of the product lines for the month of November:
$\begin{array}{lr} \text { Estimated production } & \text {1000 units }\\ \text { Direct labour per unit } & \text {12 minutes }\\ \text {Direct labour required for estimated production } & \text { 200 hours}\\ \text { Average direct labour rate per hour } &\$9\\ \text {Estimated direct labour cost } &\$1800\\\end{array}$

Actual production during November was 1 300 units and actual direct labour cost was $2520.
If Camden prepares a flexible budget for November,direct labour cost is estimated to be:

• A) $1800
• B) $2520
• C) $2340
• D) $1938