The budgeted direct labor hours are multiplied to direct labor cost rate, to calculate ____________?
Correct answer: B. budgeted total direct labor cost
- A. expected total direct labor cost
- B. budgeted total direct labor cost
- C. budgeted total indirect labor cost
- D. expected labor hours
Explanation
Multiplying budgeted direct labor hours by the direct labor cost rate estimates the total direct labor cost planned for the period. Because both inputs are budgeted, the result is budgeted total direct labor cost.
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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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