The production budget for Manner Company shows units to be produced as follows: July, 650; August, 710; and September, 570. Each unit produced requires one hour 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.

Question

Alexa Johns

Business

19 May, 15:59

The production budget for Manner Company shows units to be produced as follows: July, 650; August, 710; and September, 570. Each unit produced requires one hour 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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Dale · Answer 1

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Explanation:

Giving the following information:

Production:

July = 650 units

August = 710 units

September = 570 units

Each unit produced requires one hour of direct labor.

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

We need to prepare the direct labor budget:

July:

Direct labor = (650*1) * 16 = $10,400

August:

Direct labor = (710*1) * 16 = $11,360

September:

Direct labor = (570*1) * 16.75 = $9,547.5