Question

The total factory overhead for Rowland Company is budgeted for the year at $652,000 and divided into two departments: Fabrication, $460,000 and Assembly, $192,000. Rowland manufactures two products: treadmills and weight machines. Each treadmill requires 3 direct labor hours in Fabrication and 1 direct labor hour in Assembly. Each weight machine requires 2 direct labor hours in Fabrication and 5 direct labor hours in Assembly. Each product is budgeted for 4,000 units of production for the year. What would the total number of budgeted direct labor hours for the year in the Assembly Department be?

Answer 1

24,000 direct labor hours

Step-by-step explanation:

The computation of the total number of budgeted direct labor hours is shown below:

= Number of units of production × treadmill required direct labor hours for assembly + Number of units of production × weight machine required direct labor hours for assembly

= 4,000 units × 1 + 4,000 units × 5

= 4,000 units + 20,000 units

= 24,000 direct labor hours