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The budgeted production of Taurus, Inc. is 10,000 units per month. Each unit requires 40 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. $266,667
B. $466,667
C. $17,500
D. $700,000

1 Answer

3 votes

Answer:

B) 466,667

Step-by-step explanation:

10,000*40= 400,000/60 (converting in to Hours)

=6,666.66

6,666.66*70= USD 466,666

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