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31 May, 20:08

The production budget for Manner Company shows units to be produced as follows: July, 650; August, 710; and September, 570. Each unit produced requires one hour of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September. Prepare a direct labor budget for the months July, August, and September.

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  1. 31 May, 21:26
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    Explanation:

    Giving the following information:

    Production:

    July = 650 units

    August = 710 units

    September = 570 units

    Each unit produced requires one hour of direct labor.

    he direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September.

    We need to prepare the direct labor budget:

    July:

    Direct labor = (650*1) * 16 = $10,400

    August:

    Direct labor = (710*1) * 16 = $11,360

    September:

    Direct labor = (570*1) * 16.75 = $9,547.5
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