Win Shield International manufactures trophies. Each trophy goes through two departments in the production process and requires two direct labor hours in Department A and one hour in Department B. Labor cost is $8 per hour in Department A and $10 per hour in Department B. If the labor capacity for a normal eight-hour shift for a month is 50,000 direct labor hours each for both Departments A and
B, what would be the budgeted direct labor cost of Win Shield for the month where production is expected to be 30,000 units? The company pays overtime at time and a half.
A) $900,000
B) $780,000
C) $820,000
D) $420,000
C
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