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13 April, 21:21

The production budget for manner company shows units to be produced as follows: july, 630: august 690, and september 550. Each unit produced requires three hours of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in september.

Prepare a direct labor budget for the months July, August, and September.

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  1. 13 April, 21:25
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    Explanation:

    Giving the following information:

    Production:

    July, 630

    August 690

    September 550

    Each unit produced requires three hours of direct labor.

    The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September.

    Direct labor budget July:

    Direct labor hours required = 630*3 = 1,890

    Direct labor cost = 1,890*16 = $30,240

    Direct labor budget August:

    Direct labor hours required = 690*3 = 2,070

    Direct labor cost = 2,070*16 = $33,120

    Direct labor budget September:

    Direct labor hours required = 550*3 = 1,650

    Direct labor cost = 1,650*16.75 = $27,637.5
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