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bija089 [108]
3 years ago
11

Guiness Inc. has a budgeted production of 8,000 units. Each unit requires 40 minutes of direct labor work to complete. The direc

t labor rate is $100 per hour. What is the budgeted cost of direct labor for the month
Business
1 answer:
Alex Ar [27]3 years ago
6 0

<u>Solution and Explanation:</u>

The budgeted cost of the direct labor for the month is calcuated as follows:

the given data:

Budgeted production is = 8000 units, time required of direct labor work in order to complete the production is = 40 minutes, the direct labor rate as given in the question is = $100 per hour.

Budgeted cost = time multply with rate of labor multiply with budgeted production

(40/60 multiply with 100) multiply with 8000 = 533,333.33

therefore, the budgeted cost = $533333.33 ( rounded of to 2 places).

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