Question

Pouch Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.84 direct labor-hours. The direct labor rate is $9.40 per direct labor-hour. The production budget calls for producing 2,100 units in June and 1,900 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

$31,584

Step-by-step explanation:

Pouch Corporation

Direct Labor Budget June July Total

Required production in units

2,100 1,900

Direct labor-hours per unit

0.84 0.84

Total direct labor-hours needed

1,764 1,596

Direct labor cost per hour

$9.40 $9.40

Total direct labor cost

$16,581.60 $15,002.40 $31,584

Required production in units×Direct labor-hours per unit =Total direct labor-hours needed

Total direct labor-hours needed×Direct labor cost per hour =Total direct labor cost

$16,581.60 + $15,002.40 = $31,584