Question

The manager reported the following information: Budgeted total direct-labor costs $14,000,000 Budgeted total indirect-labor costs $8,000,000 Budgeted total direct-labor hours 200,000 Compute the budgeted direct-labor cost rate per direct-labor hour.

Answer 1

budgeted direct-labor rate= $700 per direct labor hour

Step-by-step explanation:

Giving the following information:

Budgeted total direct-labor costs $14,000,000

Budgeted total direct-labor hours 200,000

To determine the direct-labor cost rate, we need to use the following formula:

budgeted direct-labor rate= total amount of direct labor cost/ total amount of direct labor hours

budgeted direct-labor rate= 14,000,000/200,000= $700 per direct labor hour