A manufacturing company plans to produce 800 units in June; 1,000 units in July; and 600 units in August. Each unit requires ten (10) hours of direct labor. The direct labor rat…

Question

asked May 22, 2021 72.0k views

1 Answer

Chizou · Answer 1 · 2021-05-27T23:12:32+0000

Answer:

$120000

Step-by-step explanation:

Given: Company produce 800 units in June.

Each unit requires 10 hours of direct labor.

Direct labor rate is $15 per hour.

Now, calculating the Budgeted direct labor cost for June.

Budgeted direct labor cost=
$Total\ number\ of \ units\ produced* projected\ direct\ labor\ hours* direct\ labor\ cost$

⇒ Budgeted direct labor cost=
$800* 10* \$ 15$

∴ Budgeted direct labor cost=
$\$ 120000$

Hence, The budgeted direct labor cost for June is $120000.