Question

The LFH Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.5 direct labor-hours at a rate of $10.50 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. LFH Corporation needs to prepare a Direct Labor Budget for the second quarter of next year. The company has budgeted to produce 28,000 units of Product T in June. The finished goods inventories on June 1 and June 30 were budgeted at 800 and 600 units, respectively. Budgeted direct labor costs for June would be:

Answer 1

$441,000

Step-by-step explanation:

Budgeted direct labor cost = Budgeted production * Hours per unit * Rate per hour

Budgeted direct labor cost = 28,000 units * 1.5 DLH * $10.50

Budgeted direct labor cost = $441,000

So, budgeted direct labor cost for June would be $441,000