A manufacturing company plans to produce 800 units in June; 1,000 units in July; and 600 units in August. Each unit requires ten (10) hours of direct labor. The direct labor rate is $15 per hour. What is the budgeted direct labor cost for June?

$120000

Explanation:

Given: Company produce 800 units in June.

           Each unit requires 10 hours of direct labor.

           Direct labor rate is $15 per hour.

Now, calculating the Budgeted direct labor cost for June.

Budgeted direct labor cost=

⇒ Budgeted direct labor cost=  

∴ Budgeted direct labor cost=

Hence, The budgeted direct labor cost for June is $120000.

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