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brilliants [131]

3 years ago

12

Preparing a Direct Labor Budget Tulum Inc. makes a Mexican chocolate mix. Planned production in units for the first 3 months of

the coming year is: January 24,700 February 22,000 March 30,200 Each box of chocolate mix takes 0.4 direct labor hour. The average wage is $17 per hour. Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter.

2 answers:

Bingel [31]3 years ago

6 0

Answer:

The direct labor costs for January ,February and March are $ 167960

$ 149600 and $ 205360 and total is $ 522,920

The direct labor hours for January ,February and March are 9880 8800 and 12080 . Total Direct Labor hours are 30760

Explanation:

Tulum Inc.

Direct Labor Budget

January February March Total

Units 24,700 22,000 30,200 76,900

DLH per unit 0.4 0.4 0.4

DLHs 9880 8800 12080 30760

Wage/hr $ 17 $ 17 $ 17

Wages $ 167960 $ 149600 205360 $ 522,920

The direct labor costs for January ,February and March are $ 167960

$ 149600 and $ 205360 and total is $ 522,920

The direct labor hours for January ,February and March are 9880 8800 and 12080 . Total Direct Labor hours are 30760

AleksAgata [21]3 years ago

5 0

Answer:

Jan = $306 in direct labour costs

Feb = $272 in direct labour costs

March = $357 in direct labour costs

Total for the quarter = $935 in direct labour costs

Explanation:

0.4 hours is 24 minutes

January

= 24 700 units / 24 minutes = 1029

1029 minutes would be required for 24 700 units

1029 minutes / 60 = 17.15 hours. We round up to 18 hours

18 hours* $17 per hour = $306

Therefore, $306 in direct labour costs in January

February

= 22 000 units / 24 minutes = 917

917 minutes would be required to produce 22 000 units

917 minutes / 60 = 15.3 hours. We round up to 16 hours

16 hours * $17 per hour = $272

Therefore, $272 in direct labour costs in February

March

= 30 200 units / 24 minutes = 1258

1258 minutes would be required to produce 30 200 units

1258 minutes / 60 = 20.97 hours. We round up to 21 hours

21 hours * $17 per hour = $357

Therefore, $357 in direct labour costs in March

Total for the quarter = 306 + 272 + 357 = 935

$935 in direct labour costs for the first quarter

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