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The production budget for Manner Company shows units to be produced as follows: July, 620; August, 680; and September, 540. Each unit produced requires two hours of direct labor. The direct labor rate is currently $20 per hour but is predicted to be $21 per hour in September. Prepare a direct labor budget for the months July, August, and September.

User Abida
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1 Answer

6 votes

Answer:


\left[\begin{array}{cccc}-&July&August&September\\Production& 620&9,680&540\\Hours&1,240&19,360&1,080\\Labor \: Cost&24,800&387,200&22,680\\\end{array}\right]

Step-by-step explanation:

We multiply each month production by 2 hours.

This give us the budgeted hours per month.

Then we multiply by the labor rate.

for July and August the rate is $20

for September the rate is $21

The result of this is the labor budget cost for the month

User Thiago Barcala
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