Question

The production budget for manner company shows units to be produced as follows: july, 630: august 690, and september 550. Each unit produced requires three hours of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in september.

Prepare a direct labor budget for the months July, August, and September.

Answer 1

Results are below.

Step-by-step explanation:

Giving the following information:

Production:

July, 630

August 690

September 550

Each unit produced requires three hours of direct labor.

The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September.

Direct labor budget July:

Direct labor hours required= 630*3= 1,890

Direct labor cost= 1,890*16= $30,240

Direct labor budget August:

Direct labor hours required= 690*3= 2,070

Direct labor cost= 2,070*16= $33,120

Direct labor budget September:

Direct labor hours required= 550*3= 1,650

Direct labor cost= 1,650*16.75= $27,637.5