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The total cost of direct labor for the month will be $ 49350, if the company has budgeted production at 940 units for the month, each unit requires 3.5 hours of labor to produce and the average labor rate is $15 per hour.
Explanation:
The given is,
Total units produced in a month
= 940 unit per month
Time for each unit
= 3.5 unit per hour
Labor rate = $15 per hour
Step:1
Total Labor working hours for 940 units,
= Total units × Time for each unit
= 940 × 3.5
= 3290 hours
Step:2
Labor cost total working hours
= Total Labor working hours × Labor cost per hour
= 3290 × 15
= $ 49350
Result:
The total cost of direct labor for the month will be $ 49350, if the company has budgeted production at 940 units for the month, each unit requires 3.5 hours of labor to produce and the average labor rate is $15 per hour.
Answer:
e. 391,667 units
Explanation:
The computation of break-even point is shown below:-
For computing the break-even point first we need to find out the contribution per unit which is shown below:-
Contribution per unit = Selling price - Variable cost
= $4.00 - $2.8
= $1.2
So, The break-even point = Break even point= Fixed costs ÷ Contribution per unit
= $470,000 ÷ $1.2
= 391,666.66
= 391,667 units
False is correct answer.
Hope it helped you.
-Charlie
