Question

Preparing a Direct Labor Budget Patrick Inc. makes industrial solvents. Planned production in units for the first 3 months of the coming year is: January 43,800 February 41,000 March 50,250 Each drum of industrial solvent takes 0.3 direct labor hours. The average wage is $18 per hour. Required: Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer.

Answer 1

Answer:

January:

Budget labor cost= $236,520

February:

Budget labor cost= $221,400

March:

Budget labor cost= $271,350

Explanation:

Giving the following information:

Planned production in units for the first 3 months of the coming year is:

January= 43,800

February= 41,000

March= 50,250

Each drum of the industrial solvent takes 0.3 direct labor hours. The average wage is $18 per hour.

Budget labor cost= number of units*0.3 direct labor hours* average wage

January:

Budget labor cost= 43,800*0.3*18= $236,520

February:

Budget labor cost= 41,000*0.3*18= $221,400

March:

Budget labor cost= 50,250*0.3*18= $271,350