Reference no: EM132735317

Nevis' production data for a new deluxe product were taken from the most recent quarterly production budget:

Planned production in units          July            August          September

                                                700             800                     680

Problem 1: In addition, Nevis produces 4,400 units a month of its standard product. It takes two direct labor hours to produce each standard unit and 2.25 direct labor hours to produce each deluxe unit. Nevis' cost per labor hour is $16. Direct labor cost for the quarter would be budgeted at:

Multiple Choice

Option 1: $471,405.

Option 2: $480,055.

Option 3: $500,080.

Option 4: $500,880.

Option 5: None of the answers is correct.