Question

A manufacturing company plans to produce 800 units in June; 1,000 units in July; and 600 units in August. Each unit requires ten (10) hours of direct labor. The direct labor rate is $15 per hour. What is the budgeted direct labor cost for June?

Answer 1

$120000

Step-by-step explanation:

Given: Company produce 800 units in June.

Each unit requires 10 hours of direct labor.

Direct labor rate is $15 per hour.

Now, calculating the Budgeted direct labor cost for June.

Budgeted direct labor cost=
`Total\ number\ of \ units\ produced* projected\ direct\ labor\ hours* direct\ labor\ cost`

⇒ Budgeted direct labor cost=
`800* 10* \$ 15`

∴ Budgeted direct labor cost=
`\$ 120000`

Hence, The budgeted direct labor cost for June is $120000.