Ask Question
23 November, 22:20

The budgeted production of Capricorn, Inc. is 14 comma 000 units per month. Each unit requires 40 minutes of direct labor to complete. The direct labor rate is $ 90.00 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.)

+4
Answers (1)
  1. 23 November, 22:26
    0
    = $560,000.00

    Explanation:

    Budgeted labour cost = Budgeted hours * standard labour rate/hour

    The labour rate is given as $90 / hour

    Budgeted hours = Budgeted production units * Standard hours

    Standard hours is the amount of time worker is expected to complete a unit of a product. It is given as 40 minutes in this question.

    Budgeted production units = 14,000 units

    So budgeted hours = (40 * 14,000) minutes/60 minutes

    = 9333.33 hours

    Note: we needed to divide by 60 to convert the total minutes into hours

    Budgeted cost of direct labor for the month

    = 9,333.33 * $60

    = $560,000.00
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The budgeted production of Capricorn, Inc. is 14 comma 000 units per month. Each unit requires 40 minutes of direct labor to complete. The ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers