If the budgeted direct labor hours are 4550 and direct labor cost rate is $600 per labor hour then, total direct labor cost would be _____________?
Correct answer: C. $2,730,000
- A. $4,730,000
- B. $3,730,000
- C. $2,730,000
- D. $1,730,000Government & Public Sector Jobs
Explanation
Total direct labor cost equals labor hours multiplied by the cost per hour: 4,550 × $600 = $2,730,000. The other amounts do not result from this multiplication.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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