Question

A company expects to produce X units in Y and Z units in W. The budgeted direct labor hours per unit are A and the direct labor costs average B per hour. Prepare the company's direct labor budget for Y and W.

Answer 1

To prepare the company's direct labor budget for Y and W, we need to calculate the total direct labor cost for each period using the formula: Direct Labor Cost = Number of Units * Budgeted Direct Labor Hours per Unit * Direct Labor Costs per Hour.

Step-by-step explanation:

To prepare the company's direct labor budget for Y and W, we need to calculate the total direct labor cost for each period. The formula to calculate the direct labor cost is: Direct Labor Cost = Number of Units * Budgeted Direct Labor Hours per Unit * Direct Labor Costs per Hour.

For the period Y, the direct labor cost will be: X units * A hours * B per hour. For the period W, the direct labor cost will be: Z units * A hours * B per hour. Substitute the given values into the formula to get the actual budgeted numbers.