Question

The production budget for Manner Company shows units to be produced as follows: July, 530; August, 590; and September, 450. Each unit produced requires two hours of direct labor. The direct labor rate is currently $17 per hour but is predicted to be $17.75 per hour in September. Prepare a direct labor budget for the months July, August, and September.

Answer 1

Direct labor budget for the months July, August, and September are $18,020, $20,060 and $15,975 respectively.

Step-by-step explanation:

July direct labor budget = 530 * 2 * $17 = $18,020

August direct labor budget = 590 * 2 * $17 = $20,060

September direct labor budget = 450 * 2 * $17.75 = $15,975

Therefore, direct labor budget for the months July, August, and September are $18,020, $20,060 and $15,975 respectively.