Question

Sperling Company's master budget shows expected sales of 10,000 units and expected production of 11,000 units for the month of March. Each unit requires 1/2 hour of direct labor. The direct labor rate is $15.00 per hour. Calculate the expected total direct labor cost fo

Answer 1

Answer:

Results are below.

Explanation:

Giving the following information:

Sales= 10,000 units

Production= 11,000

Standard hours= 0.5

Standard cost= $15

We can calculate the total direct labor cost and the direct labor cost regarding the cost of goods sold.

Total direct labor cost= (11,000*0.5)*15= $82,500

Direct labor for cogs= (10,000*0.5)*15= $75,000