Question

Racie corporation manufactures and sells women's skirts. each skirt (unit) requires 2.2 yards of cloth. selected data from tracie's master budget for next quarter are shown below: julyaugustseptember budgeted sales (in units)8,30010,30012,300 budgeted production (in units)9,30011,80014,300 each unit requires 0.9 hours of direct labor, and the average hourly cost of tracie's direct labor is $19. what is the cost of tracie corporation's direct labor in september? a) 31,460 yards of cloth, 12,870 hours of labor, $272,370 in labor cost

b) 31,460 yards of cloth,
12,870 hours of labor, $243,100 in labor cost
c) 28,840 yards of cloth, 12,870 hours of labor,$272,370 in labor cost
d) 28,840 yards of cloth, 13,090 hours of labor, $243,100 in labor cost

Answer 1

The cost of Tracie Corporation's direct labor in September is calculated based on the budgeted production of 14,300 units, requiring 0.9 hours each at an hourly rate of $19. The total direct labor cost comes to $243,100.

Step-by-step explanation:

To calculate the cost of Tracie Corporation's direct labor in September for manufacturing women's skirts, we need to use the provided budgeted production units and the direct labor requirements per unit. According to the data, each skirt requires 0.9 hours of direct labor, and the hourly cost of direct labor is $19. For September, the budgeted production is 14,300 units.

First, we calculate the total direct labor hours needed for the entire production in September:

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• Direct labor hours per unit = 0.9 hours
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• Budgeted production in September = 14,300 units
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• Total direct labor hours = Direct labor hours per unit x Budgeted production = 0.9 hours/unit x 14,300 units = 12,870 hours

Next, we calculate the total direct labor cost for September:

• 
  
• Hourly cost of direct labor = $19
• 
  
• Total direct labor cost = Hourly cost of direct labor x Total direct labor hours = $19/hour x 12,870 hours = $244,530

So, the correct answer is option b:

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• 31,460 yards of cloth
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• 12,870 hours of labor
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• $243,100 in labor cost