Question

Northcutt's production data for a new deluxe product were taken from the most recent quarterly production budget:July August SeptemberPlanned production in units 1,000 1,100 980In addition, Northcutt produces 5,000 units a month of its standard product. It takes two direct labor hours to produce each standard unit and 2.25 direct labor hours to produce each deluxe unit. Northwest's cost per labor hour is $15.Direct labor cost for August would be budgeted at:a. $187,125.b. $194,750.c. $197,107.d. $183,250.e. None of the other answers are correct.

Answer 1

$553,950 is the total cost of the production.

Step-by-step explanation:

In the table attached the various factors are explained

The total production, direct labour, total direct labour hours per unit and the total cost is calculated.

The total production of standard production for 3 months is calculated as (30,000*$15)=$450,000

the total production of deluxe product is calculated as (6,930*$15)=>$103,950

then the sum is found to get the total cost that is $553,950.