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: july august september budgeted sales (in units) 8,800 10,800 12,800 budgeted production (in units) 9,800 12,300 14,800 each unit requires 0.8 hours of direct labor, and the average hourly cost of tracie's direct labor is $18. what is the cost of tracie corporation's direct labor in september? multiple choice

O $230,400
O $184,320
O $213,120
O $266,400

Answer 1

The correct answer is option 3. Tracie Corporation's direct labor cost for September is found by calculating the total labor hours required for that month's production and multiplying by the hourly labor cost, resulting in $213,120.

Step-by-step explanation:

The question asks to calculate Tracie Corporation's direct labor cost for the month of September. To find the total labor cost, we need to multiply the number of labor hours required for September's budgeted production by the average hourly cost of direct labor. Each unit requires 0.8 hours of labor and the hourly cost is $18.

First, calculate the total labor hours needed for production: 14,800 units × 0.8 hours/unit = 11,840 hours. Then, calculate the total cost: 11,840 hours × $18/hour = $213,120. This is the direct labor cost for September.