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31 May, 14:36

Pouch Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.80 direct labor-hours. The direct labor rate is $11.10 per direct labor-hour. The production budget calls for producing 3,800 units in June and 3,600 units in July. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months

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  1. 31 May, 16:45
    0
    June = $33,744

    July = $31,968

    Total = $65,712

    Explanation:

    Giving the following information:

    Each unit of output requires 0.80 direct labor-hours. The direct labor rate is $11.10 per direct labor-hour. The production budget calls for producing 3,800 units in June and 3,600 units in July.

    First, we need to determine the total number of hours required:

    June = 3,800*0.8 = 3,040 hours

    July = 3,600*0.8 = 2,880 hours

    Now, we can calculate the total cost:

    June = 3,040*11.1 = $33,744

    July = 2,880*11.1 = $31,968

    Total = $65,712
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