For Culver Company, units to be produced are 5,590 in quarter 1 and 6,600 in quarter 2. It takes 2.0 hours to make a finished unit, and the expected hourly wage rate is $16 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30, 2017.

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Business

Rene Ward

15 February, 22:25

For Culver Company, units to be produced are 5,590 in quarter 1 and 6,600 in quarter 2. It takes 2.0 hours to make a finished unit, and the expected hourly wage rate is $16 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30, 2017.

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Asher Conrad · Answer 1

The preparation of the direct labor budget is shown below:

Culver Company

Direct labor budget for six months

June 30, 2017

Particulars Quarter 1 Quarter 2 Six month

Production

units (A) 5,590 6,600

Direct labor

Hours (B) 2.0 2.0

Labor wage

rate per hour (C) $16 $16

Total labor cost (A * B * C) $178,880 $211,200 $390,080

Six month is a sum of quarter 1 and quarter 2