Question

Tracie Corporation manufactures and sells women's skirts. Each skirt (unit) requires 2.2 yards of cloth. Selected...

Tracie Corporation manufactures and sells women's skirts. Each skirt (unit) requires 2.2 yards of cloth. Selected data from Tracie's master budget for next quarter are shown below:

July August September
Budgeted sales (in units) 8,800 10,800 12,800
Budgeted production (in units) 9,800 12,300 14,800

Each unit requires 0.8 hours of direct labor, and the average hourly cost of Tracie's direct labor is $18. What is the cost of Tracie Corporation's direct labor in September?

Multiple Choice

  • $230,400

  • $184,320

  • $213,120

  • $266,400

Business   Accounting   
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Homework Answers

Answer #1

The correct answer is C.

Explanation:

Giving the following information:

Each skirt (unit) requires 2.2 yards of cloth.

Budgeted production (in units)

September= 14,800

Each unit requires 0.8 hours of direct labor, and the average hourly cost of Tracie's direct labor is $18.

To calculate the total cost of direct labor, first, we need to calculate the total number of hours required:

Total hours= 14,800*0.8= 11,840 hours

Now, we can calculate the total cost:


Total direct labor cost= 11,840*$18 = $213,120

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