Tracie 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) 8,900 10,900 12,900

Budgeted production (in units) 9,900 12,400 14,900

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. $220,590

b. $283,100

c. $254,790

d. $245,100

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facundobuzzetti facundobuzzetti · Answer 1 · 2020-03-30T02:45:45+02:00

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Each skirt (unit) requires 2.2 yards of cloth.

Budgeted production (in units)

September= 14,900

Each unit requires 0.9 hours of direct labor, and the average hourly cost of Tracie's direct labor is $19.

To calculate the total cost of direct labor, first, we need to calculate the total number of hours required:

Total hours= 14,900*0.9= 13,410 hours

Now, we can calculate the total cost:

Total direct labor cost= 13,410*19= $254,790