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A company manufactures a single product, M. Budgeted production output of product M during August
is 200 units. Each unit of product M requires 6 labour hours for completion and PR Co anticipates 20
per cent idle time. Labour is paid at a rate of $7 per hour. What is the direct labour cost budget for
August?
A $6,720
B $8,400
C $10,080
D $10,500
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Please help me with this 🙂
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