Fantastic Futons goes through two departments in the production process. Each futon 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. 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. Overtime is paid at time and a half
What would be the budgeted direct labor cost for January, assuming a budgeted production of 30,000 units?
a. $900,000
b. $780,000
c. $820,000
d. $420,000
C
Business
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