Roberts Company has the following direct labor budget for the current month: Budgeted production units for the month Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor costs for the month 120,000 0.75 90,000 $10 $900,000 What would be the budgeted direct labor costs for the month if Roberts Company expects to decrease the budgeted production of units to 110,000 and the direct labor cost is expected to decrease to $9 per hour? A. $825,000 B. $810,000 C. $67,500 OD. $742,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Roberts Company has the following direct labor budget for the current month:
Budgeted production units for the month
Direct labor hours per unit
Direct labor hours needed for production
Direct labor cost per hour
Budgeted direct labor costs for the month
120,000
0.75
90,000
$10
$900,000
What would be the budgeted direct labor costs for the month if Roberts Company expects to decrease the budgeted
production of units to 110,000 and the direct labor cost is expected to decrease to $9 per hour?
A. $825,000
B. $810,000
C. $67,500
OD. $742,500
Transcribed Image Text:Roberts Company has the following direct labor budget for the current month: Budgeted production units for the month Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor costs for the month 120,000 0.75 90,000 $10 $900,000 What would be the budgeted direct labor costs for the month if Roberts Company expects to decrease the budgeted production of units to 110,000 and the direct labor cost is expected to decrease to $9 per hour? A. $825,000 B. $810,000 C. $67,500 OD. $742,500
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