pooler corporation is working on its direct labor budget for the next two months. each unit of output requires 0.20 direct labor-hours. the direct labor rate is $7.00 per direct labor-hour. the production budget calls for producing 7,700 units in april and 7,500 units in may. 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? multiple choice $21,455 $21,770 $21,280 $21,945

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aamirmajeed5100 aamirmajeed5100 · Answer 1 · 2022-11-20T04:34:10+01:00

c)The total combined direct labor cost for the two months is $21,280

the total combined direct labor cost is the sum of the direct labor cost for April and May

Direct labor hour needs for the two months are calculated as

For April

7,700 units × 0.20

=1,540 units

For May

7,500 units × 0.20

=1,500 units

direct labor rate per hour for each month is equal to $7.00

The total direct labor cost for the month of April would be

=$7.00 × 1,540 units

=$10,780

The total direct labor cost for the month of May would be

=$7.00 × 1,500 units

=$10,500

Hence, the total direct labor cost for April and May is calculated by adding both costs.

=$10,780 + $10,500

=$21,280

Therefore option c is the correct answer.

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