Mpublishers budgeted production of 79,500 diaries in 2012. each diary requires assembly. assume that 12 minutes are required to assemble each diary. if assembly labor costs $14.50 per hour, determine the direct labor cost budget for 2012.

For each diary we have the following rule of three:
 14.50 $ > 60 minutes
 x > 12 minutes
 Clearing x we have:
 x = (12/60) * (14.50)
 x = 2.9 $
 Then, for all the diary we have that the cost is:
 (2.9) * (79500) = 230550 $
 
 the direct labor cost budget for 2012 is:
 230550 $