For July, White Corporation has budgeted production of 10,950 units. Each unit requires 0.20 direct labor-hours at a cost of $6.20 per direct labor-hour. How much will White Corporation budget for labor in July?

Question

Business

Lawrence Ortiz

2 December, 23:45

For July, White Corporation has budgeted production of 10,950 units. Each unit requires 0.20 direct labor-hours at a cost of $6.20 per direct labor-hour. How much will White Corporation budget for labor in July?

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Answers (1)

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Eileen · Answer 1

Answer: $13,578

Explanation:

Each unit requires 0.2 direct labour hours to complete. There are 10,950 units to be produced.

Calculating the amount of labor hours needed would therefore be,

= 10,950 * 0.2

= 2,190 labor hours would be needed.

If labor costs $6.20 per direct labor hour and 2,190 hours are needed, calculating would be,

= 2,190 * 6.2

= $13,578

$13,578 should be budgeted for labor in July.