Question

Sleep Tight, Inc., manufactures bedding sets. The budgeted production is for 51,500 comforters this year. Each comforter requires 1.5 hours to cut and sew the material. The cost of cutting and sewing labor is $11.80 per hour. Determine the direct labor budget for this year. $fill in the blank 1

Answer 1

Total direct labor hours= 77,250

Direct labor cost= $911,550

Step-by-step explanation:

Giving the following information:

Production= 51,500 units

Standard hours= 1.5 per unit

Standard rate= $11.8 per hour

First, we need to calculate the direct labor hours required:

Total direct labor hours= 1.5*51,500= 77,250

Now, the direct labor cost:

Direct labor cost= 77,250*11.8

Direct labor cost= $911,550