What is the total amount of direct labor budgeted

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Question - Marine Enterprises has developed the following unit costs for the production of one of its products, based on a normal activity of 10,000 units per month:

Direct materials 2.0 pounds @ $12 = $24.00

Direct labor 1.5 hours @ $15 = $22.50

Variable overhead 120% of direct labor cost

Fixed overhead 140% of direct labor cost

What is the total amount of direct labor budgeted for a month in which production is expected to be 12 ,000 units?

a. $245,500.

b. $287,500.

c. $247,500.

d. $270,000.

e. $265,000.

Reference no: EM132991349

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