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:

Day of Record

The date set by a company on which the investors must be on the company's books in order to receive a dividend.

Money Market Instruments

Short-term debt instruments, usually with a maturity of less than one year, used for borrowing and lending in the money market.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations to finance their immediate operational needs, characterized by its low-risk and short maturity period.

Tax-exempt

Refers to income, transactions, or entities that are not subject to tax by government authorities.