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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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  1. 22 October, 19:12
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    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
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