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The budgeted production of​ Capricorn, Inc. is 13 comma 000 units per month. Each unit requires 40 minutes of direct labor to complete. The direct labor rate is $ 100.00 per hour. Calculate the budgeted cost of direct labor for the month.​ (Round any intermediate calculations to the nearest cent and your final answer to the nearest​ dollar.)

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TomShelby

Answer:

budgeted cost of direct labor for the month  ​$ 866,666.67

Explanation:

expected production: 13,000 units

minutes per units: 40

labor cost per hours: $100

Cost per unit: $100/60 minutees per hour x 40 minute per unit =  $66.67

Total labor cost budgeted for the month:

expected production x labor cost per unit:

13,000 units x $ 66.67 = $ 866,666.67

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