Question

Company expects to produce 1 comma 620 units in January and 1 comma 885 units in February. Yandell budgets five direct labor hours per unit. Direct labor costs average $ 9 per hour. Prepare Yandell​'s direct labor budget for January and February.

Answer 1

January:

Direct labor cost= $72,900

February:

Direct labor cost= $84,825

Step-by-step explanation:

Giving the following information:

Production:

anuary= 1,620 units

February= 1,885 units

Yandell budgets five direct labor hours per unit.

Direct labor costs average $ 9 per hour.

First, we need to determine the number of direct labor hours for each month:

January= 1,620*5= 8,100

February= 1,885*5= 9,425

Now, we can calculate the budgeted direct labor cost:

January:

Direct labor cost= 8,100*9= $72,900

February:

Direct labor cost= 9,425*9= $84,825