Question

Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 075 direct labor-hours. The direct labor rate is $9.00 per direct labor houz. The production budget calls for producing 7,000 units in April and 6,800 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? Muniple choice.

a) $93640
b) $93,815
c) $93550
d) $93325

Answer 1

The total combined direct labor cost for the two months is $93,150, which is obtained by calculating the direct labor hours needed for each month's production and multiplying by the hourly wage rate.

Step-by-step explanation:

To calculate the total combined direct labor cost for Pooler Corporation over two months, we need to take into account the direct labor hours required per unit of output, the direct labor rate, and the production budget's units for both April and May. First, we will calculate the direct labor hours needed for each month by multiplying the number of units to be produced by the labor hours required per unit. Then, we will calculate the cost by multiplying the total labor hours by the direct labor rate.

For April, the calculation is:
7,000 units * 0.75 hours/unit = 5,250 hours
5,250 hours * $9.00/hour = $47,250
For May, it is:
6,800 units * 0.75 hours/unit = 5,100 hours
5,100 hours * $9.00/hour = $45,900

Adding the direct labor costs of both months gives us the total combined direct labor cost:

$47,250 (April) + $45,900 (May) = $93,150