Evaluate what is the budgeted direct labor cost

Reference no: EM1341375

If it takes 6 direct labor hours to make a boat motor and if direct labor employees are paid $5 per hour, what is the budgeted direct labor cost if budgeted production were 80 motors?

a) $480
b )$ 400
c) $2,000
d) $2,480
e) none of the above

It seems like it would be $30 per motor x 80 motors which is $2400 - but that seems too simple.

Reference no: EM1341375

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