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16 December, 20:20

For Gundy Company, units to be produced are 5,280 in quarter 1 and 6,400 in quarter 2. It takes 2.0 hours to make a finished unit, and the expected hourly wage rate is $15 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30, 2020.

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  1. 16 December, 20:43
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    Total cost = $350,400

    Explanation:

    Giving the following information:

    For Gundy Company, units to be produced are 5,280 in quarter 1 and 6,400 in quarter 2. It takes 2.0 hours to make a finished unit, and the expected hourly wage rate is $15 per hour.

    Quarter 1:

    Direct labor cost = 5,280*2 = 10,560 hours

    Quarter 2:

    Direct labor cost = 6,400*2 = 12,800 hours

    Total cost = (10,560 + 12,800) * 15 = $350,400
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