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Roberts Company has the following direct labor budget for the current month: Budgeted production units for the month Direct labor hours per unit Direct labor

Roberts Company has the following direct labor budget for the current month:
Budgeted production units for the month
Direct labor hours per unit
Direct labor hours needed for production
Direct labor cost per hour
Budgeted direct labor costs for the month
160,000
0.75
120,000
$50
$6,000,000
What would be the budgeted direct labor costs for the month if Roberts Company expects to decrease the budgeted production of units to 150,000 and the direct labor cost is expected to decrease to $49 per hour?
A. $5,512,500
B. $367,500
C. $5,880,000
D. $5,625,000
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