expected total direct labour cost
budgeted total direct labour cost
budgeted total indirect labour cost
expected labour hours
Answer is Right!
Answer is Wrong!
The correct answer is: A. expected total direct labour cost
Budgeted direct labor hours are multiplied by the direct labor cost rate to calculate the expected total direct labor cost. The direct labor cost rate is the hourly cost of labor, including wages, benefits, and payroll taxes. The expected total direct labor cost is the total amount of money that a company expects to spend on direct labor in a given period of time.
The other options are incorrect because:
- Option B, budgeted total direct labor cost, is the same as the expected total direct labor cost.
- Option C, budgeted total indirect labor cost, is the total amount of money that a company expects to spend on indirect labor in a given period of time. Indirect labor is labor that is not directly involved in the production of goods or services.
- Option D, expected labor hours, is the total number of hours that a company expects to work in a given period of time.