Answer:
Indirect labor= 550 hours
Explanation:
Giving the following information:
Daytripper: 2,200 backpacks in August
Excursion: 900 backpacks in August
Each Daytripper backpack requires 1 hour of direct labor and each Excursion backpack requires 2.5 hours of direct labor.
<u>First, we need to calculate direct labor:</u>
Direct labor= 2,200*1 + 900*2.5= 4,450
<u>Now, indirect labor:</u>
Indirect labor= total labor hours - direct hours
Indirect labor= 5,000 - 4,450
Indirect labor= 550 hours