Morris Company is planning on producing 200,000 units. Direct labor is estimated at 0.25 hours per unit at a cost of $10 per hour. The total direct labor cost is Blank______.Multiple choice question.$500,000$1,500,000$2,000,000$1,000,000
Question
Morris Company is planning on producing 200,000 units. Direct labor is estimated at 0.25 hours per unit at a cost of 10 per hour. The total direct labor cost is Blank______.Multiple choice question.500,0002,000,000$1,000,000
Solution
To calculate the total direct labor cost, you need to multiply the number of units by the direct labor hours per unit, and then multiply that result by the cost per hour.
Here's the step-by-step calculation:
- Multiply the number of units by the direct labor hours per unit: 200,000 units * 0.25 hours/unit = 50,000 hours
- Multiply the total hours by the cost per hour: 50,000 hours * 500,000
So, the total direct labor cost is $500,000.
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