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8 October, 23:01

g The budgeted production of Capricorn, Inc. is 15 comma 000 units per month. Each unit requires 30 minutes of direct labor to complete. The direct labor rate is $ 70 per hour. Calculate the budgeted cost of direct labor for the month. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) A. $ 225 comma 000 B. $ 35 comma 000 C. $ 1 comma 050 comma 000 D. $ 525 comma 000

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  1. 8 October, 23:11
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    D. $525,000

    Explanation:

    budgeted production = 15,000 units/month

    unit production time required = 30 minutes = > 0.5 hours

    direct labor rate = $70 per hour

    Budgeted cost of direct labor for the month = 15,000 * 0.5 * 70

    = $525,000
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