What the total combined direct labor cost for two months


Problem

Pouch Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.90 direct labor-hours. The direct labor rate is $10.00 per direct labor-hour. The production budget calls for producing 2,700 units in June and 2,500 units in July. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?

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Cost Accounting: What the total combined direct labor cost for two months
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