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

question 93

Multiple Choice

Pouch Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.84 direct labor-hours. The direct labor rate is $9.40 per direct labor-hour. The production budget calls for producing 2,100 units in June and 1,900 units in July. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?

• A) $15,792.00.
• B) $15,002.40.
• C) $16,581.60.
• D) $31,584.00.

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Definitions:

Long-Term Liabilities

Financial obligations of a business that are due more than one year in the future, such as bonds payable, long-term loans, and lease obligations.