Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August.The direct labor requirement per unit is 0.50 hours.Labor is paid at the rate of $21 per hour.The total cost of direct labor budgeted for the month of August is:

A) $82,950.
B) $4,050.
C) $85,050.
D) $3,950.
E) $168,000.

Question

LaVarik Nelson · Accepted Answer

Final Answer : C, Explanation :  To calculate the total cost of direct labor in August, we need to first calculate the total number of hours required for production:8,100 units * 0.50 hours per unit = 4,050 total direct labor hoursNext, we can use the labor rate provided to calculate the total cost of these hours:4,050 total direct labor hours * $21 per hour = $85,050Therefore, the correct answer is choice C: $85,050.

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