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19 February, 18:34

For Culver Company, units to be produced are 5,590 in quarter 1 and 6,600 in quarter 2. It takes 2.0 hours to make a finished unit, and the expected hourly wage rate is $16 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30, 2017.

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  1. 19 February, 18:49
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    The preparation of the direct labor budget is shown below:

    Culver Company

    Direct labor budget for six months

    June 30, 2017

    Particulars Quarter 1 Quarter 2 Six month

    Production

    units (A) 5,590 6,600

    Direct labor

    Hours (B) 2.0 2.0

    Labor wage

    rate per hour (C) $16 $16

    Total labor cost (A * B * C) $178,880 $211,200 $390,080

    Six month is a sum of quarter 1 and quarter 2
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