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: JulyAugustSeptemberBudgeted sales (in units)7,0009,00011,000Budgeted production (in units)8,00010,50013,000Each 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?
A. $158,400
B. $234,000
C. $187,200
D. $198,000
Answer: C
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