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16 August, 18:44

Preparing a Direct Labor Budget Tulum Inc. makes a Mexican chocolate mix. Planned production in units for the first 3 months of the coming year is: January 24,700 February 22,000 March 30,200 Each box of chocolate mix takes 0.4 direct labor hour. The average wage is $17 per hour. Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter.

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  1. 16 August, 20:30
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    The direct labor costs for January, February and March are $ 167960

    $ 149600 and $ 205360 and total is $ 522,920

    The direct labor hours for January, February and March are 9880 8800 and 12080. Total Direct Labor hours are 30760

    Explanation:

    Tulum Inc.

    Direct Labor Budget

    January February March Total

    Units 24,700 22,000 30,200 76,900

    DLH per unit 0.4 0.4 0.4

    DLHs 9880 8800 12080 30760

    Wage/hr $ 17 $ 17 $ 17

    Wages $ 167960 $ 149600 205360 $ 522,920

    The direct labor costs for January, February and March are $ 167960

    $ 149600 and $ 205360 and total is $ 522,920

    The direct labor hours for January, February and March are 9880 8800 and 12080. Total Direct Labor hours are 30760
  2. 16 August, 22:43
    0
    Jan = $306 in direct labour costs

    Feb = $272 in direct labour costs

    March = $357 in direct labour costs

    Total for the quarter = $935 in direct labour costs

    Explanation:

    0.4 hours is 24 minutes

    January

    = 24 700 units / 24 minutes = 1029

    1029 minutes would be required for 24 700 units

    1029 minutes / 60 = 17.15 hours. We round up to 18 hours

    18 hours * $17 per hour = $306

    Therefore, $306 in direct labour costs in January

    February

    = 22 000 units / 24 minutes = 917

    917 minutes would be required to produce 22 000 units

    917 minutes / 60 = 15.3 hours. We round up to 16 hours

    16 hours * $17 per hour = $272

    Therefore, $272 in direct labour costs in February

    March

    = 30 200 units / 24 minutes = 1258

    1258 minutes would be required to produce 30 200 units

    1258 minutes / 60 = 20.97 hours. We round up to 21 hours

    21 hours * $17 per hour = $357

    Therefore, $357 in direct labour costs in March

    Total for the quarter = 306 + 272 + 357 = 935

    $935 in direct labour costs for the first quarter
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