Question

Sleep Tight, Inc., manufactures bedding sets. The budgeted production is for 20,900 comforters this year. Each comforter requires 1.5 hours to cut and sew the material. The cost of cutting and sewing labor is $14.50 per hour. Determine the direct labor budget for this year. $

Answer 1

Answer:

Direct labor budgeted cost= $454,575

Explanation:

Giving the following information:

The budgeted production is for 20,900 comforters this year.

Each comforter requires 1.5 hours to cut and sew the material.

The cost of cutting and sewing labor is $14.50 per hour.

To calculate the direct labor budget, we need to determine the total amount of direct labor hours and then multiplying it to the direct labor hour cost.

The total amount of hours= 20,900*1.5= 31,350 hours

Direct labor budgeted cost= 31,350 *14.5= $454,575