Rose company is preparing its direct labor budget for may. projections for the month are that 8,350 units are to be produced and that direct labor time is three hours per unit. if the labor cost per hour is $9, what is the total budgeted direct labor cost for may?

Question

Belen Arnold

Business

4 October, 05:08

Rose company is preparing its direct labor budget for may. projections for the month are that 8,350 units are to be produced and that direct labor time is three hours per unit. if the labor cost per hour is $9, what is the total budgeted direct labor cost for may?

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Davion · Answer 1

Rose company is preparing its direct labor budget for May. Projections for the month are that 8,350 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $9. What is the total budgeted direct labor cost for may?

To solve:

Each unit is going to take 3 hours to make. So, multiply the cost per hour by the amount of hours it will take ($9) (3) = $27 per unit.

Then, multiply the cost per unit, by the amount of units to be produced ($27) (8,350) = $225,450