answer D is 106,840.80 (wasn\'t in the picture Veltri Corporation is working on

Question

answer D is 106,840.80 (wasn't in the picture

Veltri Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.71 direct labor-hours. The direct labor rate is $11.40 per direct labor-hour. The production budget calls for producing 6,700 units in October and 6,500 units in November. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5.480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months? Multiple Choice $126.711.00 $115.083.00 $124 944.00

Explanation / Answer

Answer: $124944.00

Explanation

Direct Labor cost Octbober November Production (in units) a 6700 6500 Hours required per unit production b 0.71 0.71 Hours required for production c=axb 4757 4615 Mininum labor hour payment d 5480 5480 Maximum of c or d e 5480 5480 Rate per labor hour f 11.4 11.4 Total Labor Cost g = exf       62,472         62,472 Total labor cost for two months      1,24,944

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