Budgeted direct labour hours are multiplied to direct labour cost rate to calculate

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
  Join Our Telegram Channel
  124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube