Nevis' production data for a new deluxe product were taken from the most recent quarterly production budget: July August September Planned production in units 1.100 1000 980 In addition, Nevis produces 5,000 units a month of its standard product. It takes two direct labor hours to produce each standard unit and 225 direct labor hours to produce each deluxe unit. Nevis' cost per labor hour is $15. Direct labor cost for the quarter would be budgeted at: S53,950. $533,125. $547,750. $519,075. None of the answers is correct.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...
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Nevis' production data for a new deluxe product were taken from the most recent quarterly production
budget:
July
August
September
Planned production in units
1,000
1,100
980
In 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 the quarter would be budgeted at:
$53,950.
$533,125.
$547,750.
$519,075.
None of the answers is correct.
Transcribed Image Text:Nevis' production data for a new deluxe product were taken from the most recent quarterly production budget: July August September Planned production in units 1,000 1,100 980 In 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 the quarter would be budgeted at: $53,950. $533,125. $547,750. $519,075. None of the answers is correct.
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