Forty Winks Corporation manufactures night stands. The production budget shows that Forty Winks Corporation plans to produce 1 comma 900 night stands in March and 2 comma 000 night stands in April. Each night stand requires 0.5 direct labor hours in its production. Forty Winks Corporation has a direct labor rate of $ 14.00 per direct labor hour. What is the total combined direct labor cost that Forty Winks Corporation should budget in March and April?

Question

Gianni Griffin

Business

22 October, 18:50

Forty Winks Corporation manufactures night stands. The production budget shows that Forty Winks Corporation plans to produce 1 comma 900 night stands in March and 2 comma 000 night stands in April. Each night stand requires 0.5 direct labor hours in its production. Forty Winks Corporation has a direct labor rate of $ 14.00 per direct labor hour. What is the total combined direct labor cost that Forty Winks Corporation should budget in March and April?

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Answers (1)

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Jerry · Answer 1

Direct labor cost = $29,250

Explanation:

Giving the following information:

Production:

March = 1,900 nightstands

April = 2,000 nightstands

Each nightstand requires 0.5 direct labor hours in its production.

Forty Winks Corporation has a direct labor rate of $ 14.00 per direct labor hour.

First, we need to determine the number of hours required for each month:

March = 1,900*0.5 = 950 hours

April = 2,000*0.5 = 1,000 hours

Now, the combined cost:

Direct labor cost = 1,950*15

Direct labor cost = $29,250