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Tracie Corporation manufactures and sells women's skirts. Each skirt (unit) requires 2.2 yards of cloth. Selected data from Tracie's master budget for next quarter are shown below:
July August September
Budgeted sales (in units) 7,000 9,000 11,000
Budgeted production (in units) 8,000 10,500 13,000
Problem 1: Each unit requires 0.8 hours of direct labor, and the average hourly cost of Tracie's direct labor is $18. What is the cost of Tracie Corporation's direct labor in September?
A) $187,200
B) $198,000
C) $234,000
D) $158,400
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