Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct labor requirement per unit is 0.50 hours. Labor is paid at the rate of $21 per hour. The total cost of direct labor budgeted for the month of August is:
A. $4,050.
B. $85,050.
C. $3,950.
D. $168,000.
E. $82,950.
Answer: B
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