Question

Pouch Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.80 direct labor-hours. The direct labor rate is $11.10 per direct labor-hour. The production budget calls for producing 3,800 units in June and 3,600 units in July. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months

Answer 1

June= $33,744

July= $31,968

Total= $65,712

Step-by-step explanation:

Giving the following information:

Each unit of output requires 0.80 direct labor-hours. The direct labor rate is $11.10 per direct labor-hour. The production budget calls for producing 3,800 units in June and 3,600 units in July.

First, we need to determine the total number of hours required:

June= 3,800*0.8= 3,040 hours

July= 3,600*0.8= 2,880 hours

Now, we can calculate the total cost:

June= 3,040*11.1= $33,744

July= 2,880*11.1= $31,968

Total= $65,712