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Nevis' production data for a new deluxe product were taken from the most recent quarterly production budget:
Planned production in units July August September
700 800 680
Problem 1: In addition, Nevis produces 4,400 units a month of its standard product. It takes two direct labor hours to produce each standard unit and 2.25 direct labor hours to produce each deluxe unit. Nevis' cost per labor hour is $16. Direct labor cost for the quarter would be budgeted at:
Multiple Choice
Option 1: $471,405.
Option 2: $480,055.
Option 3: $500,080.
Option 4: $500,880.
Option 5: None of the answers is correct.
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