Sheffield Corp. is planning to sell 400 buckets and produce 480 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $18 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sheffield has 600 kilos of plastic in beginning inventory and wants to have 700 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?

Question

Vivian Pruitt

Business

11 March, 23:44

Sheffield Corp. is planning to sell 400 buckets and produce 480 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $18 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sheffield has 600 kilos of plastic in beginning inventory and wants to have 700 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?

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Answers (1)

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Shadow · Answer 1

Direct labor = $12,960

Explanation:

Giving the following information:

Sheffield Corp. is planning to sell 400 buckets and produce 480 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. The employees of the company are paid $18 per hour.

Direct labor = (480 units * 1.5 hours) * 18 = $12,960