MC Qu. 9-70 Nevis' production data for a new deluxe...

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

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

• $471,405.
• $480,055.
• $500,080.
• $500,880.
• None of the answers is correct.