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9 August, 15:01

The budgeted production of Capricorn, Inc. is 13 comma 000 units per month. Each unit requires 40 minutes of direct labor to complete. The direct labor rate is $ 100.00 per hour. Calculate the budgeted cost of direct labor for the month. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)

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  1. 9 August, 15:08
    0
    budgeted cost of direct labor for the month $ 866,666.67

    Explanation:

    expected production: 13,000 units

    minutes per units: 40

    labor cost per hours: $100

    Cost per unit: $100/60 minutees per hour x 40 minute per unit = $66.67

    Total labor cost budgeted for the month:

    expected production x labor cost per unit:

    13,000 units x $ 66.67 = $ 866,666.67
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