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18 April, 17:35

Vaughn Manufacturing is planning to sell 600 buckets and produce 980 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $17 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Vaughn has 500 kilos of plastic in beginning inventory and wants to have 600 kilos in ending inventory. How much is the total amount of budgeted direct labor for March

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  1. 18 April, 18:44
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    Labor Cost $ 8,330

    Explanation:

    - March

    Units 980

    Hours per Unit 0.5

    Labor Hour 490

    Rate $ 17

    Labor Cost $ 8,330

    First, we look for the units to be produced.

    Then, we multiply by the amount it takes to do a single unit, in this case, the one-half hour per bucket.

    Now, we have the total labor hours

    Last step, we multiply by the laobr rate to get the labor cost for the month of March
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