Question

Exercise 23-21 Emeric and Ellie’s Painting Service estimates that it will paint 15 small homes, 10 medium homes, and 3 large homes during the month of June 2017. The company estimates its direct labor needs as 40 hours per small home, 76 hours for a medium home, and 134 hours for a large home. Its average cost for direct labor is $29 per hour. Prepare a direct labor budget for Emeric and Ellie’s Painting Service for June 2017.

Answer 1

Total direct labor cost budget for June 2017 small home is $13,920 , medium home is $22,040 and large home is $11,658

Explanation: Total direct labor cost budget for June 2017

small home medium home large home

budgeted painting requirement 15 10 3

direct labor needs (in hours) 40 76 134

-----------------------------------------------------

Total direct labor hours 480 760 402

direct labor cost per hour $29 $29 $29

-----------------------------------------------------Total direct labor cost budget for $13,920 $22,040 $11,658

June 2017 -----------------------------------------------------

Total direct labor cost =

(Total direct labor hours×direct labor cost per hour )