Question

The total factory overhead for Martin Company is budgeted for the year at $375,000. Martin manufactures two garden products: a leaf blower and a garden wagon. These products each require four direct labor hours (dlh) to manufacture. Each product is budgeted for 2,500 units of production for the year. Determine the total number of budgeted direct labor hours for the year.

Answer 1

Calculation of total number of budgeted direct labor hours for the year:

It is given that Martin manufactures two garden products. These products each require four direct labor hours (dlh) to manufacture. Each product is budgeted for 2,500 units of production for the year.

Hence, the total number of budgeted direct labor hours for the year shall be = 2 Products *2500 units * 4 dlh = 20,000 dlh.