Question

Forty Winks Corporation manufactures night stands. The production budget shows that Forty Winks Corporation plans to produce​ 1,800 night stands in March and​ 1,400 night stands in April. Each night stand requires 0.50 direct labor hours in its production. Forty Winks Corporation has a direct labor rate of​ $19 per direct labor hour. What is the total combined direct labor cost that Forty Winks Corporation should budget in March and​ April?

Answer 1

$27,200

Step-by-step explanation:

The total direct labour cost is the product of the direct labour hour and the number of hours required to meet targeted production.

Given that Forty Winks Corporation has a direct labor rate of​ $19 per direct labor hour and a night stand requires 0.50 direct labor hours in its production,

The cost of one stand in direct labor hours

= 0.5 * 419

= $8.50

The total combined direct labor cost that Forty Winks Corporation should budget in March and​ April

= $8.50 (1800 + 1400)

= $27,200