Rodriguez, Inc., is preparing its direct labor budget for 2020 from the following production budget based on a calendar year. Quarter Units Quarter Units 1 20,440 3 35,420 2 25,370 4 30,200 Each unit requires 1.80 hours of direct labor. Prepare a direct labor budget for 2020. Wage rates are expected to be $18 for the first 2 quarters

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Business

Charlize

27 September, 18:56

Rodriguez, Inc., is preparing its direct labor budget for 2020 from the following production budget based on a calendar year. Quarter Units Quarter Units 1 20,440 3 35,420 2 25,370 4 30,200 Each unit requires 1.80 hours of direct labor. Prepare a direct labor budget for 2020. Wage rates are expected to be $18 for the first 2 quarters

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Layne Galloway · Answer 1

Instructions are below.

Explanation:

Giving the following information:

1st Quarter = 20,400

2nd Quarter = 25,370

3th Quarter = 35,420

4th Quarter = 30,200

Each unit requires 1.8 hours.

Direct labor rate = $18

The direct labor budget is calculated using the total hours required for each quarter, and the direct labor rate.

Q1:

Total hours required = 1.8*20,400 = 36,720

Total cost = 18*36,720 = $660,960

Q2:

Total hours required = 1.8*25,370 = 45,666

Total cost = 18*45,666 = $821,998

Q3:

Total hours required = 1.8*35,420 = 63,756

Total cost = 18*63,756 = $1,147,608

Q4:

Total hours required = 1.8*30.200 = 54,360

Total cost = 18*54,360 = $978,480