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11 September, 06:44

Rodriguez, Inc., is preparing its direct labor budget for 2020 from the following production budget based on a calendar year. Quarter Units Quarter Units 1 20,440 3 35,420 2 25,370 4 30,200 Each unit requires 1.80 hours of direct labor. Prepare a direct labor budget for 2020. Wage rates are expected to be $18 for the first 2 quarters

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  1. 11 September, 06:47
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    Instructions are below.

    Explanation:

    Giving the following information:

    1st Quarter = 20,400

    2nd Quarter = 25,370

    3th Quarter = 35,420

    4th Quarter = 30,200

    Each unit requires 1.8 hours.

    Direct labor rate = $18

    The direct labor budget is calculated using the total hours required for each quarter, and the direct labor rate.

    Q1:

    Total hours required = 1.8*20,400 = 36,720

    Total cost = 18*36,720 = $660,960

    Q2:

    Total hours required = 1.8*25,370 = 45,666

    Total cost = 18*45,666 = $821,998

    Q3:

    Total hours required = 1.8*35,420 = 63,756

    Total cost = 18*63,756 = $1,147,608

    Q4:

    Total hours required = 1.8*30.200 = 54,360

    Total cost = 18*54,360 = $978,480
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