Northwest manufactures a product requiring 0.5 ounces of platinum per unit.

/in /by

Northwest manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately $360 per ounce; the company maintains an ending platinum inventory equal to 10% of the following month’s production usage. The following data were taken from the most recent quarterly production budget:

July- 1,000 August 1100 Sept. 980 units

If it takes two direct labor hours to produce each unit and Northwest’s cost per labor hour is $15, direct labor cost for August would be budgeted at:

Some other amount.

$31,200.

$16,500.

$33,000.

$34,800.