Question

The budgeted production of Taurus, Inc. is 13,000 units per month. Each unit requires 30 minutes of direct labor to complete. The direct labor rate is $80 per hour. Calculate the budgeted cost of direct labor for the month. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)

Answer 1

Direct labor cost= $520,000

Step-by-step explanation:

Giving the following information:

The budgeted production of Taurus, Inc. is 13,000 units per month. Each unit requires 30 minutes of direct labor to complete. The direct labor rate is $80 per hour.

First, we need to calculate the total direct labor hours:

Direct labor hours= 13,000*0.5= 6,500 hours

Now, we can calculate the direct labor cost:

Direct labor cost= 6,500*80= $520,000