The gerald corporation makes and sells a single product called a clop. each clop requires 1.1 direct labor-hours at $8.20 per direct labor-hour. the direct labor workforce is fully adjusted each month to the required workload. the company is preparing a direct labor budget for the first quarter of the year. if the company has budgeted to produce 20,000 clops in january, then the budgeted direct labor cost for january is:

$180,400

Explanation:

The computation of the budgeted direct labor cost is shown below:

= Number of budgeted production clops × required direct labor hours × direct labor hour rate

= 20,000 Clops × 1.1 direct labor hours × $8.20

= $180,400

Simply we multiply the budgeted production with the required direct labor hours and direct labor hour rate so that the budgeted direct labor cost can be computed

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