The manager reported the following information: Budgeted total direct-labor costs $14,000,000 Budgeted total indirect-labor costs $8,000,000 Budgeted total direct-labor hours 200,000 Compute the budgeted direct-labor cost rate per direct-labor hour.

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Business

Barley

16 August, 12:57

The manager reported the following information: Budgeted total direct-labor costs $14,000,000 Budgeted total indirect-labor costs $8,000,000 Budgeted total direct-labor hours 200,000 Compute the budgeted direct-labor cost rate per direct-labor hour.

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Christopher Meadows · Answer 1

budgeted direct-labor rate = $700 per direct labor hour

Explanation:

Giving the following information:

Budgeted total direct-labor costs $14,000,000

Budgeted total direct-labor hours 200,000

To determine the direct-labor cost rate, we need to use the following formula:

budgeted direct-labor rate = total amount of direct labor cost / total amount of direct labor hours

budgeted direct-labor rate = 14,000,000/200,000 = $700 per direct labor hour