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

question 57

Multiple Choice

Morie Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.75 direct labor-hours. The direct labor rate is $8.10 per direct labor-hour. The production budget calls for producing 2,000 units in March and 2,300 units in April. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 1,760 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?

• A)$28,512.00
• B)$26,406.00
• C)$28,228.50
• D)$26,122.50

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Definitions:

Corporate Social Reporting

The practice of disclosing information regarding a company's impact on society, the environment, and its corporate social responsibility activities.

Triple Bottom Line

An accounting framework that goes beyond the traditional measures of profit, return on investment, and shareholder value to include environmental and social dimensions.

Kyoto Protocol

An international agreement that commits signatories to reducing greenhouse gas emissions.

Greenhouse Gas Emissions

The release of gases into the Earth's atmosphere that trap heat, contributing to global warming and climate change.