The formula to compute the budgeted direct labor cost is:

A. units to produce divided by direct labor required per unit times direct labor cost per hour

B. units to produce times direct labor required per unit divided by direct labor cost per hour

C. units to produce times direct labor required per unit times direct labor cost per hour

D. units to produce times direct labor required per unit plus direct labor cost per hour

Answer

The correct formula to compute the budgeted direct labor cost is to multiply the units to produce by the direct labor required per unit and the direct labor cost per hour. This method allows businesses to accurately estimate their labor expenses for production. Thus, the correct choice is C.

Explanation

The formula to compute the budgeted direct labor cost is essential for businesses that want to understand their labor expenses when producing goods.

The most accurate formula to calculate budgeted direct labor cost can be expressed as:

Budgeted Direct Labor Cost=Units to Produce×Direct Labor Required per Unit×Direct Labor Cost per Hour

To break this down step-by-step:

By multiplying these three components together, a company can estimate how much it will spend on labor to produce its specified output. This helps in budgeting and financial planning.

Therefore, the correct answer from the given options is C:

units to produce×direct labor required per unit×direct labor cost per hour.