Question

Sweet Charity Company produces boxes of candy products by the gross (candy canes and lollipops). During September, sales in units were projected to be 20,000 and production was projected to be 14,000 units. Direct labor rate is $8.50 per hour, and each unit takes 0.75 hours of direct labor to make. What is the total cost of direct labor for September?

Answer 1

The total direct labor cost for Sweet Charity Company in September is calculated to be $89,250, based on projected production of 14,000 units, each requiring 0.75 hours of labor at $8.50 per hour.

Step-by-step explanation:

The total cost of direct labor for September for the Sweet Charity Company can be calculated by multiplying the number of units produced by the time it takes to make each unit and then by the direct labor rate. According to the given information, the production was projected to be 14,000 units, with each unit taking 0.75 hours of direct labor. The direct labor rate is $8.50 per hour.

To find the total direct labor hours required for production, we multiply the number of units (14,000) by the hours per unit (0.75 hours):

• 14,000 units × 0.75 hours/unit = 10,500 hours

Next, to calculate the total cost of direct labor, we multiply the total labor hours by the direct labor hourly rate:

• 10,500 hours × $8.50/hour = $89,250

Therefore, the total labor cost for Sweet Charity Company in September is $89,250.