In budgeting direct labor hours for the coming year, it is important to a. multiply production in units by the labor wage rate. b. multiply production in units by the direct labor hours per unit. c. divide production in units by the direct labor hours per unit. d. subtract direct labor hours per unit from production in units. e. subtract production in units from the direct labor hours per unit.

Question

Aden Hogan

Business

26 November, 02:26

In budgeting direct labor hours for the coming year, it is important to a. multiply production in units by the labor wage rate. b. multiply production in units by the direct labor hours per unit. c. divide production in units by the direct labor hours per unit. d. subtract direct labor hours per unit from production in units. e. subtract production in units from the direct labor hours per unit.

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Answers (1)

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Saul · Answer 1

b. multiply production in units by the direct labor hours per unit

Explanation:

In order to calculate the budgeted direct labor hours we simply multiplied the units production with the direct labor per unit

In mathematically,

Budgeted direct labor hours = Production in units * direct labor hours per unit

By considering the units production and direct labor hours per unit we can get the budgeted direct labor hours which are to be considered as a estimated direct labor hours