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.)

Question

Jeremy Gutierrez

Business

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.)

+2

Answers (1)

Know the Answer?

Edith Sanford · Answer 1

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