The budgeted production of Capricorn, Inc. is 8,000 units per month. Each unit requires 30

minutes of direct labor to complete. The direct labor rate is $90.00 per hour. Calculate the budgeted cost of direct labor for the month. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)

A. $360,000.00

B. $720,000.00

C. $120,000.00

D. $24,000.00

2)

A company is setting its direct materials and direct labor standards for its leading product. Direct material costs from the supplier are $5.00 per square foot, net of purchase discount. Freightin amounts to $0.30 per square foot. The basic wages of the assembly line personnel are $19.00. per hour. Payroll taxes are approximately 23% of wages. How much is the direct labor cost standard per hour? (Round your answer to the nearest cent.)

A. $4.37

B. $19.00

C. $28.37

D. $23.37