A firm manufactures 15,000 units per annum, each taking 1.5 direct labour hours. The direct labour rate is ₹8 per hour and pay rise of 15% is awarded half way through the year. What is the total annual direct labour budg

CS Executive · Cost and Management Accounting · PYQS · June 2019
A firm manufactures 15,000 units per annum, each taking 1.5 direct labour hours. The direct labour rate is ₹8 per hour and pay rise of 15% is awarded half way through the year. What is the total annual direct labour budget amount?
(A) ₹1,20,000
(B) ₹1,93,500
(C) ₹1,80,000
(D) ₹2,07,000

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Budgeting

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