The budgeted production of Taurus, Inc. is 13,000 units per month. Each unit requires 30 minutes of direct labor to complete. The direct labor rate is $80 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

Martha Wilkinson

Business

2 May, 02:57

The budgeted production of Taurus, Inc. is 13,000 units per month. Each unit requires 30 minutes of direct labor to complete. The direct labor rate is $80 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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Answers (1)

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Kiera Villarreal · Answer 1

Direct labor cost = $520,000

Explanation:

Giving the following information:

The budgeted production of Taurus, Inc. is 13,000 units per month. Each unit requires 30 minutes of direct labor to complete. The direct labor rate is $80 per hour.

First, we need to calculate the total direct labor hours:

Direct labor hours = 13,000*0.5 = 6,500 hours

Now, we can calculate the direct labor cost:

Direct labor cost = 6,500*80 = $520,000