Question

Sleep Tight, Inc. manufactures bedding sets. The budgeted production is for 42,500 comforters this year. Each comforter requires 1.5 hours to cut and sew the material. The cost of cutting and sewing labor is $21.00 per hour. Determine the direct labor budget for this year.

Answer 1

$1,338,750

Step-by-step explanation:

To calculate the direct labor budget, we need to determine the amount of direct labor hours and them multiply it to the direct labor cost.

The total amount of hours = 42,500 × 1.5 hours = 63,750

Direct labor budget cost = 63,750 × $21 = $1,338,750

Therefore, the direct labor budget for this year is $1,338,750