A manufacturing company has budgeted production at 940 units for the month. Each unit requires 3.5

hours of labor to produce. The average labor rate is $15 per hour. The total cost of direct labor for the

month will be $

The total cost of direct labor for the month will be $ 49350, if the company has budgeted production at 940 units for the month, each unit requires 3.5 hours of labor to produce and the average labor rate is $15 per hour.

Explanation:

The given is,

Total units produced in a month

= 940 unit per month

Time for each unit

= 3.5 unit per hour

Labor rate = $15 per hour

Step:1

Total Labor working hours for 940 units,

= Total units * Time for each unit

= 940 * 3.5

= 3290 hours

Step:2

Labor cost total working hours

= Total Labor working hours * Labor cost per hour

= 3290 * 15

= $ 49350

Result:

The total cost of direct labor for the month will be $ 49350, if the company has budgeted production at 940 units for the month, each unit requires 3.5 hours of labor to produce and the average labor rate is $15 per hour.