The Gerald Corporation Makes and Sells a Single Product Called

question 106

Multiple Choice

The Gerald Corporation makes and sells a single product called a Clop. Each Clop requires 1.1 direct labor-hours at $8.20 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. The company is preparing a Direct Labor Budget for the first quarter of the year. If the company has budgeted to produce 20,000 Clops in January, then the budgeted direct labor cost for January is:

• A)$164,000
• B)$180,400
• C)$172,200
• D)$195,600

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