Fantastic Futons Goes Through Two Departments in the Production Process

question 23

Multiple Choice

Fantastic Futons goes through two departments in the production process. Each futon requires two direct labor hours in Department A and one hour in Department B. Labor cost is $8 per hour in Department A and $10 per hour in Department B. Assuming the amount budgeted to be produced in January is 30,000 units, what is the budgeted direct labor cost for January?

• A) $810,000
• B) $840,000
• C) $780,000
• D) $540,000

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