Question

Sleep Tight, Inc., manufactures bedding sets. The budgeted production is for 45,800 comforters this year. Each comforter requires 1.5 hours to cut and sew the material. The cost of cutting and sewing labor is $21.20 per hour. Determine the direct labor budget for this year. $

Answer 1

$1,456,440

Step-by-step explanation:

Given that,

Budgeted production = 45,800

Direct labor hours per unit = 1.5

Cost of cutting and sewing labor = $21.20 per hour

Total direct labor hours required:

= Budgeted production × Direct labor hours per unit

= 45,800 × 1.5

= 68,700

Total direct labor cost:

= Total direct labor hours required × cost per hour

= 68,700 × $21.20

= $1,456,440