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Commerce · Q650

Costing

Graduate and Post Graduate · Commerce · question 650

Q650

If budgeted total direct labour hours are 5500 and budgeted direct labour cost is 755000, then budgeted direct labour cost rate is

A.
$138 per labour hour
B.
$137.27 per hour
Answer
C.
$140 per labour hour
D.
$142 per labour hour

Answer: Option B

Solution

Answer: Option B
Solution:
Budgeted direct labour cost = Budgeted direct labour cost ÷ Budgeted total direct labour hours
= 137.27 per hour