Question

Pro Clean Company, a manufacturer of hand sanitizers, intends to produce 40,000 units in the third quarter and 35,000 units in the fourth quarter. Each unit requires 0.50 direct labor-hours (DLHs) and the cost of direct labor per hour is $18. What would be the total direct labor cost for the fourth quarter?

Answer 1

$315,000

Step-by-step explanation:

Data provided as per the question is below:-

Fourth quarter = 35,000 units

Direct labor-hours = 0.5

Cost of direct labor per hour = $18

The computation of total direct labor cost for the fourth quarter is shown below:-

Total direct Labor cost in fourth quarter = Fourth quarter × Direct labor-hours × Cost of direct labor per hour

= 35,000 × 0.5 × $18

= $315,000

Therefore, for computing the total direct Labor cost in fourth quarter we simply applied the above formula.