Company expects to produce 1 comma 620 units in January and 1 comma 885 units in February. Yandell budgets five direct labor hours per unit. Direct labor costs average $ 9 per hour. Prepare Yandell 's direct labor budget for January and February.

January:

Direct labor cost = $72,900

February:

Direct labor cost = $84,825

Explanation:

Giving the following information:

Production:

anuary = 1,620 units

February = 1,885 units

Yandell budgets five direct labor hours per unit.

Direct labor costs average $ 9 per hour.

First, we need to determine the number of direct labor hours for each month:

January = 1,620*5 = 8,100

February = 1,885*5 = 9,425

Now, we can calculate the budgeted direct labor cost:

January:

Direct labor cost = 8,100*9 = $72,900

February:

Direct labor cost = 9,425*9 = $84,825