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7 September, 01:36

Sthilaire Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.44 direct labor-hours. The direct labor rate is $9.10 per direct labor-hour. The production budget calls for producing 2,000 units in April and 1,900 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 960 hours in total each month even if there is not enough work to keep them busy.

Required:

Prepare the direct labor budget for the next two months. (Round "labor-hours per unit" & "labor cost per hour" answers to 2 decimal places.)

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Answers (1)
  1. 7 September, 03:48
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    Answer and Explanation:

    As per the data given in the question,

    Direct labor budget for next two months

    Particulars April May

    Required production units (A) 2,000 1,900

    Direct labor hours per unit (B) 0.44 0.44

    Total Direct labor hours needed (A*B) 880 836

    Total Direct labor hours paid (C) 960 960

    Direct labor cost per hour (D) $9.10 $9.10

    Total Direct labor cost (C*D) $8,736 $8,736

    Since we have to take at least 960 hours so we considered the same i. s hwon above
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