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The managerial accountant at Monumental Industries reported an upcoming sale of desks. Each desk requires .60 direct labor hours to produce. Monumental has a direct labor rate of $14 per direct labor hour to produce the product. The managerial accountant reported that the production budget indicates that the production schedule consists of 800 desks in January and 1,000 desks in February. What is the total direct labor budgeted cost together for January and February

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Answer:

$15,120

Step-by-step explanation:

Each desk requires .60 direct labor hours to produce.

Monumental has a direct labor rate of $14 per direct labor hour to produce the product.

The managerial accountant reported that the production budget indicates that the production schedule consists of 800 desks in January and 1,000 desks in February.

Total direct labor budgeted cost together for January and February will be:

January = 0.6 standard hrs x $14 labor rate per hour x 800 desks = $6,720

February = 0.6 standard hrs x 14 labor rate per hour x 1000 desks = $8,400

Total = $15,120

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