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?