Depasquale Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.41 direct labor-hours. The direct labor rate is $8.70 per direct labor-hour. The production budget calls for producing 5,600 units in May and 6,000 units in June. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months? (Round your intermediate calculations to 2 decimal places.)

Question

Carsen Bartlett

Business

25 December, 17:36

Depasquale Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.41 direct labor-hours. The direct labor rate is $8.70 per direct labor-hour. The production budget calls for producing 5,600 units in May and 6,000 units in June. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months? (Round your intermediate calculations to 2 decimal places.)

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Answers (1)

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Solomon Barrett · Answer 1

Labour cost budget $ 41,899.20

Explanation:

The labour budget is prepared using the production budget. It arrived at by multiplying the production units by the standard labour and then value the hours in cost

Labour hours

May = 0.41 * 5,600 = 2,296 hours

June = 0.41 * 6,000 = 2,520 hours

Combined hours 4,816

Labour rate * $8.70

Labour cost $41,899.20