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Ugo [173]
2 years ago
15

Rodriguez, Inc., is preparing its direct labor budget for 2020 from the following production budget based on a calendar year. Qu

arter Units Quarter Units 1 20,440 3 35,420 2 25,370 4 30,200 Each unit requires 1.80 hours of direct labor. Prepare a direct labor budget for 2020. Wage rates are expected to be $18 for the first 2 quarters
Business
1 answer:
Veseljchak [2.6K]2 years ago
8 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

1st Quarter= 20,400

2nd Quarter= 25,370

3th Quarter= 35,420

4th Quarter= 30,200

Each unit requires 1.8 hours.

Direct labor rate= $18

<u>The direct labor budget is calculated using the total hours required for each quarter, and the direct labor rate.</u>

Q1:

Total hours required= 1.8*20,400= 36,720

Total cost= 18*36,720= $660,960

Q2:

Total hours required= 1.8*25,370= 45,666

Total cost= 18*45,666= $821,998

Q3:

Total hours required= 1.8*35,420= 63,756

Total cost= 18*63,756 = $1,147,608

Q4:

Total hours required= 1.8*30.200= 54,360

Total cost= 18*54,360  = $978,480

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