Workshape Company budgeted 250,000 units of production for June, 260,000 units for July, and 320,000 units for August. Each unit requires 0.30 direct labor hours. How many direct labor hours are budgeted for August?
a.5,000 direct labor hours
b.52,500 direct labor hours
c.96,000 direct labor hours
d.50,000 direct labor hours
e.300,000 direct labor hours
Answer is C
Labor Hours Required in August = Expected Production in August x Labor hours per unit
= 320000 x 0.30
= 96000 Direct Labor Hours
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