Question

Pasadena Candle Inc. budgeted production of 51,000 candles for January. Each candle requires molding. Assume that three minutes are required to mold each candle. If molding labor costs $17.25 per hour, determine the direct labor cost budget for January. Round total direct labor cost to the nearest dollar, if required. Pasadena Candle Inc. Direct Labor Cost Budget For the Month Ending January 31

Answer 1

$43,988

Step-by-step explanation:

The computation of the direct labor cost is shown below:

Production 51,000 candles

Multiply by Minute per candle 3

Candle 153,000 minutes per candle

Convert minutes to hours ÷ 60 minute

Molding hours 2,550

Multiply by Labor cost per hour $17,.25

Total direct labor cost $43,987.50

Hence, the direct labor cost for the month of January is $43,988