Question

During August, 9,355 hours of direct labor time were needed to make 19,500 units of the Jogging Mate. The direct labor cost totaled $50,517 for the month. What was the labor cost per hour?

a. $5.40
b. $5.41
c. $5.42
d. $5.43

Answer 1

The labor cost per hour for making the Jogging Mate is calculated by dividing the total labor cost of $50,517 by the total direct labor time of 9,355 hours, which results in a cost of $5.40 per hour.

Step-by-step explanation:

To find the labor cost per hour, we need to divide the total direct labor cost by the total hours of direct labor time used. In this case, the total direct labor cost for August is $50,517 and the direct labor time is 9,355 hours.

Here's the calculation:

• Labor cost per hour = Total direct labor cost ÷ Total hours of direct labor time
• Labor cost per hour = $50,517 ÷ 9,355 hours
• Labor cost per hour = $5.40

Therefore, the labor cost per hour for making the Jogging Mate is $5.40.