The budgeted production of Capricorn, Inc. is 11,000 units per month. Each unit requires 20 minutes of direct labor to complete. The direct labor rate is $100.00 per hour. Calculate the budgeted cost of direct labor for the month. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
The budgeted production of Capricorn, Inc. is 11,000 units per month. Each unit requires 20 minutes of direct labor to complete. The direct labor rate is $100.00 per hour. Calculate the budgeted cost of direct labor for the month. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The budgeted production of Capricorn, Inc. is 11,000 units per month. Each unit requires 20 minutes of direct labor to complete. The direct labor rate is $100.00 per hour. Calculate the budgeted cost of direct labor for the month. (Round any intermediate calculations to
the nearest cent and your final answer to the nearest dollar.)
O A. $73,333.00
O B. $55,000.00
O C. $366,667.00
O D. $1,100,000.00
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