Northcutt's Production Data for a New Deluxe Product Were Taken

question 4

Multiple Choice

Northcutt's production data for a new deluxe product were taken from the most recent quarterly production budget: In addition, Northcutt produces 5,000 units a month of its standard product. It takes two direct labor hours to produce each standard unit and 2.25 direct labor hours to produce each deluxe unit. Northwest's cost per labor hour is $15. Direct labor cost for September would be budgeted at:

• A) $187,125.
• B) $183,075.
• C) $194,750.
• D) $197,075.
• E) None of the other answers are correct.

---

Definitions:

Account Balances

These reflect the amount of money within a financial account at any given time.

Transaction

An economic event that involves a transfer of value between two or more entities, leading to a change in their financial position.

Trial Balance

An accounting report that lists the balances of all ledgers in two columns, debits and credits, ensuring that total debits equal total credits.

Debit Balances

Accounts with a balance that represents amounts owed or expenses; typically assets and expenses accounts.