Marine Enterprises Has Developed the Following Unit Costs for the Production

question 47

Multiple Choice

Marine Enterprises has developed the following unit costs for the production of one of its products,based on a normal activity of 10,000 units per month:
$$\begin{array} { | l | l | } \hline \text { Direct materials } & 2.0 \text { pounds } @ \$ 12 = \$ 24.00 \\\hline \text { Direct labor } & 1.5 \text { hours } @ \$ 15 = \$ 22.50 \\\hline \text { Variable overhead } & 120 \% \text { of direct labor cost } \\\hline \text { Fixed owerhead } & 140 \% \text { of direct labor cost } \\\hline\end{array}$$
What is the total amount of direct labor budgeted for a month in which production is expected to be 11,000 units?

• A) $165,000.
• B) $225,000.
• C) $247,500.
• D) $297,000.

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