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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Business

Bryant Wilkins

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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Maryjane Espinoza · Answer 1

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