James Worman Is Preparing a Direct Labor Budget

Multiple Choice

James Worman is preparing a direct labor budget.His sales budget shows total sales units of 15,000 and sales dollars of $18,750.The direct materials purchases budget shows materials to be purchased of 15,000 units and budgeted purchases cost of $3,750.The production budget indicates a total of 12,000 units to be produced.Standard direct labor hours per unit are 0.30 and the standard average wage rate is $15.What is budgeted direct labor cost?

A) $67,500
B) $54,000
C) $180,000
D) $225,000