Tracie Corporation manufactures and sells women's skirts. Each skirt (unit) requires 3.2 yards of cloth.Selected data from Tracie's master budget for next quarter are shown below:Budgeted sales (in units)Budgeted production (In units)July8,1009,100August10,10011,600September12,10014.100Each unit requires 0.7 hours of direct labor, and the average hourly cost of Tracie's direct labor is $18. Whatis the cost of Tracie Corporation's direct labor in September?O 8,470O 177,660O 253,800152,460

Solution: Direct labor hours needed in september = Units production in september * Hours per unit = 14100 * 0.7 = 9870 Cost of direct labor in September = Hours in september * rate per hour = 9870 * 18 = $177,660 Hence second option is corerct.

Business

Accounting

Tracie Corporation manufactures and sells women's skirts. Each skirt (unit) requires 3.2 yards of cloth. Selected data from Tracie's master budget for next quarter are shown below: Budgeted sales (In units) Budgeted production (In units) Juty 8,100 9,100 August 10,100 11,600 September 12,100 14,100 Each unit requires 0.7 hours of direct labor, and the average hourly cost of Tracie's direct labor is $18. What is the cost of Tracie Corporation's direct labor in September?

Tracie Corporation manufactures and sells women's skirts. Each skirt (unit) requires 3.2 yards of cloth. Selected data from Tracie's master budget for next quarter are shown below: Budgeted sales (In units) Budgeted production (In units) Juty 8,100 9,100 August 10,100 11,600 September 12,100 14,100 Each unit requires 0.7 hours of direct labor, and the average hourly cost of Tracie's direct labor is $18. What is the cost of Tracie Corporation's direct labor in September?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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