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Sheffield Corp. is preparing its direct labor budget for May. Projections for the month are that...

Sheffield Corp. is preparing its direct labor budget for May. Projections for the month are that 34400 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May? $1296000. $1195200. $1216800. $1238400.

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Answer #1

Total budgetted labour cost=total units budgetted x labour cost per unit

Labour cost per unit=3 hrs x $12=$36

ie 34400 unist x $36=$1238400

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