Question

Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.06 direct labor-hours. The direct labor rate is $8.00 per direct labor-hour. The production budget calls for producing 5,300 units in June and 5,800 units in July. Required: Prepare the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places.)

Answer 1

Results are below.

Step-by-step explanation:

Giving the following information:

Each unit of output requires 0.06 direct labor-hours.

The direct labor rate is $8.00 per direct labor-hour.

The production budget calls for producing 5,300 units in June and 5,800 units in July.

Direct labor budget June:

Direct labor hours= 5,300*0.06= 318

Direct labor cost= 318*8= $2,544

Direct labor budget July:

Direct labor hours= 5,800*0.06= 348

Direct labor cost= 348*8= $2,784