Sweet Dreams, Inc. manufactures bedding sets. The budgeted production is for 52,000 comforters in 2012. Each comforter requires 1.5 hours to cut and sew the material. If cutting and sewing labor costs $11.00 per hour, determine the direct labor budget for 2012.

Question

Business

Sonny Shepard

16 March, 12:13

Sweet Dreams, Inc. manufactures bedding sets. The budgeted production is for 52,000 comforters in 2012. Each comforter requires 1.5 hours to cut and sew the material. If cutting and sewing labor costs $11.00 per hour, determine the direct labor budget for 2012.

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Schaefer · Answer 1

Direct labor budget = $858,000

Explanation:

Giving the following information:

The budgeted production is for 52,000 comforters in 2012. Each comforter requires 1.5 hours to cut and sew the material. If cutting and sewing labor costs $11.00 per hour.

First, we need to calculate the total requirement of direct labor hours:

Total direct labor hours = 52,000 units*1.5 = 78,000 hours.

Direct labor budget = 78,000 hours * $11 = $858,000