Nevis' production data for a new deluxe product were taken from the most recent quarterly production budget: JulyAugustSeptemberPlanned production in units1,0001,100980In addition, Nevis 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. Nevis' cost per labor hour is $15. Direct labor cost for August would be budgeted at:
A. $197,107.
B. $183,250.
C. $194,750.
D. $187,125.
E. None of the answers is correct.
Answer: D
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