Question

Pisa trophy co. budgeted production of 50,000 brass trophies for the coming year. each trophy requires engraving. assume that 15 minutes are required to engrave each trophy. if engraving labor costs $15.00 per hour, determine the direct labor cost budget for the year.

Answer 1

$187500 labor for the year.
there are 50000 trophies budgeted for the year. the engraving takes 15 minutes or they can do 4 per hour. divide 50000 by 4 to get the number of labor hours for the year. 12500 labor hours for the year. Multiply labor hours by 15 dollars per hour to get $187500.