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14 November, 03:26

The production budget for Manner Company shows units to be produced as follows: July, 620; August, 680; September, 540. each unit produced requires two hours of direct labor. the direct labor rate is currently $20 per hour but is predicted to be $21 per hour in September. Prepare a direct labor budget for the month's July, August, and September.

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  1. 14 November, 03:38
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    Instructions are listed below.

    Explanation:

    Estimated production:

    July = 620

    August = 680

    September = 540

    Each unit produced requires two hours of direct labor.

    The direct labor rate is currently $20 per hour but is predicted to be $21 per hour in September.

    First, we need to calculate the total number of hours for each month. Then, calculate the total cost.

    July:

    Direct labor hours = 620*2 = 1,240 hours

    Total cost = 1,240*20 = $24,800

    August:

    Direct labor hours = 680*2 = 1,360

    Total cost = 1,360*20 = $27,200

    September:

    Direct labor hours = 540*2 = 1,080

    Total cost = 1,080*21 = $22,680
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