Whitmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $9.20 per direct labor-hour. The production budget calls for producing 4,400 units in February and 4,900 units in March. Required:Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month.

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Business

Cantrell

3 February, 03:50

Whitmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $9.20 per direct labor-hour. The production budget calls for producing 4,400 units in February and 4,900 units in March. Required:Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month.

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Emery Riddle · Answer 1

Total cost = $4,278

Explanation:

Giving the following information:

Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $9.20 per direct labor-hour. The production budget calls for producing 4,400 units in February and 4,900 units in March.

Production in hours:

February = 0.05*4,400 = 220 hours

March = 0.05*4,900 = 245 hours

Total cost = 220*9.20 + 245*9.2 = $4,278