Company X is preparing the direct labor budget for the month of March. The company estimates total production of 150,000 units. Each unit requires 0.1 direct labor hours to produce. The company pays $12 per direct labor hour. The company has no lay-off policy. Hence, it guarantees a minimum of 20,000 direct labor hours to be paid every month. How much is the direct labor cost for the month of March? O a. $200,000 Ob. $240,000 Oc. $220,000 O d. None of the given answers O e. $180,000

Company X is preparing the direct labor budget for the month of March. The company estimates total production of 150,000 units. Each unit requires 0.1 direct labor hours to produce. The company pays $12 per direct labor hour. The company has no lay-off policy. Hence, it guarantees a minimum of 20,000 direct labor hours to be paid every month. How much is the direct labor cost for the month of March? O a. $200,000 Ob. $240,000 Oc. $220,000 O d. None of the given answers O e. $180,000

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter16: Job Order Costing

Section: Chapter Questions

Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...

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