Fill in the Blank QuestionFill in the blank question.JP Service Company has budgeted direct labor hours of 100 and direct labor cost per hour of $25 for data analysis personnel and budgeted direct labor hours of 50 and direct labor cost per hour of $30 for staff accountants. JP Service Company's cost of direct labor is $_?
Question
Fill in the Blank QuestionFill in the blank question.JP Service Company has budgeted direct labor hours of 100 and direct labor cost per hour of 30 for staff accountants. JP Service Company's cost of direct labor is $_?
Solution
To calculate the total cost of direct labor for JP Service Company, you need to multiply the number of budgeted direct labor hours by the direct labor cost per hour for each type of personnel.
First, calculate the cost for data analysis personnel: 100 hours * 2500
Next, calculate the cost for staff accountants: 50 hours * 1500
Finally, add these two amounts together to get the total cost of direct labor: 1500 (accountants) = $4000
So, JP Service Company's cost of direct labor is $4000.
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