The production budget for manner company shows units to be produced as follows: july, 630: august 690, and september 550. Each unit produced requires three hours of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in september.

Prepare a direct labor budget for the months July, August, and September.

Question

Business

James Andersen

14 March, 19:45

The production budget for manner company shows units to be produced as follows: july, 630: august 690, and september 550. Each unit produced requires three hours of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in september.

Prepare a direct labor budget for the months July, August, and September.

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Josh Gray · Answer 1

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Explanation:

Giving the following information:

Production:

July, 630

August 690

September 550

Each unit produced requires three hours of direct labor.

The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September.

Direct labor budget July:

Direct labor hours required = 630*3 = 1,890

Direct labor cost = 1,890*16 = $30,240

Direct labor budget August:

Direct labor hours required = 690*3 = 2,070

Direct labor cost = 2,070*16 = $33,120

Direct labor budget September:

Direct labor hours required = 550*3 = 1,650

Direct labor cost = 1,650*16.75 = $27,637.5