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Smith Corporation makes and sells a single product called a Pod. Each Pod requires 1.4 direct labor-hours at $9.60 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. Smith Corporation is preparing a Direct Labor Budget for the second quarter of the year. In June the company has budgeted to produce 22,000 Pods. Budgeted direct labor costs incurred in June would be:

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Answer:

Total direct labor cost= $295,680

Explanation:

Giving the following information:

Each Pod requires 1.4 direct labor-hours at $9.60 per direct labor-hour. In June the company has budgeted to produce 22,000 Pods.

First, we need to calculate the direct labor hours required:

Direct labor hours= 1.4*22,000= 30,800

Now, the direct labor cost:

Total direct labor cost= 30,800*9.6= $295,680

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