If the budgeted total direct labor hours are 3800 and budgeted direct labor cost is $480000, then the budgeted direct labor cost rate will be ___________?
Correct answer: A. $126.32 per labor hour
- A. $126.32 per labor hour
- B. $128.32 per labor hour
- C. $130 per labor hour
- D. $132 per labor hour
Explanation
Divide the budgeted direct labor cost by the budgeted hours: $480,000 ÷ 3,800 = $126.32 per labor hour. This gives option a.
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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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