Question

Forty Winks Corporation manufactures night stands. The production budget shows that Forty Winks Corporation plans to produce 1 comma 600 night stands in March and 1 comma 100 night stands in April. Each night stand requires 0.25 direct labor hours in its production. Forty Winks Corporation has a direct labor rate of $ 13.00 per direct labor hour. What is the total combined direct labor cost that Forty Winks Corporation should budget in March and​ April?

Answer 1

$8,775 is the cost for both months

Step-by-step explanation:

In this question, we are asked to calculate total combined direct labor cost that forty winks corporation should budget in the months of March and April.

Let’s proceed!

To solve this question , we first calculate the total direct labor hours required.

Mathematically that can be calculated by ;

Production budget * Direct labor hour required per unit

For the month of March we have;

1,600 * 0.25 = 400

For April we have ;

1,100 * 0.25 = 275

We identify that the direct labor per hour rate = $13

For the month of March,

The total direct labor cost = 13 * 400 = $5,200

For the month of April;

The total direct labor cost = 275 * 13 =$3,575

The cost for both months is thus; $3,575 + $5,200 = $8775

Answer 2

$8,775

Step-by-step explanation:

Forty Winks Corporation

March Night stand + April Night Stand × direct labour hours × direct labour rate.

$1,600+ $1,100 =$2,700

$2,700×0.25 direct labor hours =$675

$675×labor rate of $ 13.00=$8,775

The total combined direct labor cost that Forty Winks Corporation should budget in March and​ April is $8,775