Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 071 direct labor-hours, The direct labor rate is $10.00 per direct labor-hour. The production budget calls for producing 7,700 units in April and 7,500 units in May. The company quarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5.480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months? Multiple Choice $128,250.00 $108,050.00 $109,600.00 $107,920.00
Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 071 direct labor-hours, The direct labor rate is $10.00 per direct labor-hour. The production budget calls for producing 7,700 units in April and 7,500 units in May. The company quarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5.480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months? Multiple Choice $128,250.00 $108,050.00 $109,600.00 $107,920.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Pooler Corporation is working on its direct labor budget for the next two months, Each unit of output requires 071 direct labor-hours. The direct labor rate is $10.00 per direct labor-hour. The
production budget calls for producing 7,700 units in April and 7,500 units in May. The company quarantees Its direct labor workers a 40-hour paid work week. With the number of workerS
currently employed, that means that the company is committed to paying its direct labor work force for at least 5, 480 hours in total each month even if there is not enough work to keep
them busy. What would be the total combined direct labor cost for the two months?
Multiple Choice
$128.250.00
$108.050.00
$109,600.00
$107,920.00
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