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ShippersRUs provides logistic support services for on-line merchants. The company maintains warehouses that stock items...

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Accounting

ShippersRUs provides logistic support services for on-line merchants. The company maintains warehouses that stock items carried by the on-line clients. When a client receives an order from a customer, the order is forwarded to ShippersRUs, which pulls the item from storage, packs it and ships it to the customer. The compay uses a predetermined variable overhead rate based on direct labor-hours. In the most recent month, 190,000 items were shipped to customers using 4,200 direct labor-hours. The company incurred a total of $7,200 in variable overhead costs. According to the companys standards, 0.02 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $1.25 per direct labor-hour. The static budget this month was based on the expectation that 150,000 items would be shipped. The actual number of items shipped was 160,000 items. If direct labor cost is $15.00 per hour, what is the amount of direct labor cost in the flexible budget? The answer is in dollars. Remember to put a $ at the beginning of your answer! Carry all decimals as you do the intermediate calculations. Use no decimal places in your final answer.

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