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Compute the expected total direct labor cost

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Reference no: EM133138442

Question - For the upcoming month, Shan Inc. has planned for sales of 8,000 units.

The company also has the following "original" assumptions about the resources required to make a finished unit of salable product. The original assumptions (or standards) are as follow:

Direct material: Total cost = $750,000; Resource units (RU)/Finished units (FU) = 1.5

Direct labor: Price/RU = $12.50; Cost per FU = $37.50

Variable overhead: RU/FU = 0.50; Price per RU = $45.00

Required - Based on planned sales, compute the expected TOTAL direct labor cost?

Reference no: EM133138442

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