Question

Waterway Industries is preparing its direct labor budget for May. Projections for the month are that 30600 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $18, what is the total budgeted direct labor cost for May?

Answer 1

$1,652,400

Step-by-step explanation:

Given that;

Projections for the month = 30,600 units

Direct labor time = 3 hours per unit

Labor cost per hour = $18

Then, Total budgeted direct labor cost for May would be;

= Projections for the month × Direct labor time × labor cost per hour

= 30,600 × 3 × $18

= $1,652,400