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3 June, 14:28

Company expects to produce 1 comma 620 units in January and 1 comma 885 units in February. Yandell budgets five direct labor hours per unit. Direct labor costs average $ 9 per hour. Prepare Yandell 's direct labor budget for January and February.

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  1. 3 June, 14:45
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    January:

    Direct labor cost = $72,900

    February:

    Direct labor cost = $84,825

    Explanation:

    Giving the following information:

    Production:

    anuary = 1,620 units

    February = 1,885 units

    Yandell budgets five direct labor hours per unit.

    Direct labor costs average $ 9 per hour.

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

    January = 1,620*5 = 8,100

    February = 1,885*5 = 9,425

    Now, we can calculate the budgeted direct labor cost:

    January:

    Direct labor cost = 8,100*9 = $72,900

    February:

    Direct labor cost = 9,425*9 = $84,825
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