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

question 83

Multiple Choice

Hagos 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:

Full Disclosure Principle

A fundamental accounting principle requiring that financial statements provide all necessary information to stakeholders to understand a firm's financial condition.