Reference no: EM132792520

Erie Company manufactures a small MP3 player called the Jogging Mate. The company uses standards to control its costs. The labour standards that have been set for one Jogging Mate MP3 player are as follows:

Standard hour          Standard rate per hour      Standard cost

15 minutes                                 £ 9.00                      £ 2.25

During August, 4,800 hours of direct labour time were recorded in the manufacture of 20,000 units of the Jogging Mate. The direct labour cost totalled £50,400 for the month.

Required:

Problem 1. What direct labour cost should have been incurred in the manufacture of the 20,000 units of the Jogging Mate?