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artcher [175]
2 years ago
8

A manufacturing company has budgeted production at 940 units for the month. Each unit requires 3.5

Business
1 answer:
USPshnik [31]2 years ago
5 0

The total cost of direct labor for the month will be $ 49350, if the company has budgeted production at 940 units for the month, each unit requires 3.5 hours of labor to produce and the average labor rate is $15 per hour.

Explanation:

The given is,

          Total units produced in a month

                                 = 940 unit per month

          Time for each unit

                                 = 3.5 unit per hour

               Labor rate = $15 per hour

Step:1

           Total Labor working hours for 940 units,

                                  = Total units × Time for each unit

                                  = 940 × 3.5

                                  = 3290 hours

Step:2

           Labor cost total working hours

                                 = Total Labor working hours × Labor cost per hour

                                 = 3290 × 15

                                 = $ 49350

Result:

         The total cost of direct labor for the month will be $ 49350, if the company has budgeted production at 940 units for the month, each unit requires 3.5 hours of labor to produce and the average labor rate is $15 per hour.

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