Traverse Company manufactures and sells women's skirts. Each skirt (unit) requires 2.5 yards of cloth. Selected data from Traverse's master budget for next quarter are shown below: Each unit requires 1.5 hours of direct labor, and the average hourly cost of Traverse's direct labor is $10. What is the cost of Traverse Company's direct labor in September if they produce 12,000 skirts? a) $135,000 b) $180,000 c) $157,500 d) $120,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...
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Traverse Company manufactures and sells women's
skirts. Each skirt (unit) requires 2.5 yards of cloth.
Selected data from Traverse's master budget for next
quarter are shown below: Each unit requires 1.5 hours
of direct labor, and the average hourly cost of
Traverse's direct labor is $10. What is the cost of
Traverse Company's direct labor in September if they
produce 12,000 skirts?
a) $135,000
b) $180,000
c) $157,500
d) $120,000
Transcribed Image Text:Traverse Company manufactures and sells women's skirts. Each skirt (unit) requires 2.5 yards of cloth. Selected data from Traverse's master budget for next quarter are shown below: Each unit requires 1.5 hours of direct labor, and the average hourly cost of Traverse's direct labor is $10. What is the cost of Traverse Company's direct labor in September if they produce 12,000 skirts? a) $135,000 b) $180,000 c) $157,500 d) $120,000
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