The budgeted production of Taurus, Inc. is 13,000 units per month. Each unit requires 30 minutes of direct labor to complete. The direct labor rate is $80 per hour. Calculate the budgeted cost of direct labor for the month. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)

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Business

Gabriella

27 August, 08:19

The budgeted production of Taurus, Inc. is 13,000 units per month. Each unit requires 30 minutes of direct labor to complete. The direct labor rate is $80 per hour. Calculate the budgeted cost of direct labor for the month. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)

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Answers (1)

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Ajax · Answer 1

Direct labor cost = $520,000

Explanation:

Giving the following information:

The budgeted production of Taurus, Inc. is 13,000 units per month. Each unit requires 30 minutes of direct labor to complete. The direct labor rate is $80 per hour.

First, we need to calculate the total direct labor hours:

Direct labor hours = 13,000*0.5 = 6,500 hours

Now, we can calculate the direct labor cost:

Direct labor cost = 6,500*80 = $520,000