Staci Pearce Is Preparing a Direct Labor Budget

Multiple Choice

Staci Pearce is preparing a direct labor budget.Her sales budget shows total sales units of 15,000 and sales dollars of $45,000.The direct materials purchases budget shows materials to be purchased of 25,000 units and budgeted purchases cost of $18,750.The production budget indicates a total of 25,000 units to be produced.Standard direct labor hours per unit is .50 and the standard average wage rate is $10.What is budgeted direct labor cost?

A) $125,000
B) $143,750
C) $188,750
D) $250,000