Answer:
$59,410
Explanation:
With regards to the above information, we need to calculate first, total number of units for first quarter of the year.
Total number of units for first quarter of the year = 2,960 + 2,740 + 3,440
= 9,140
But, each unit requires 0.5 hours of direct labor.
It therefore means that;
1 unit need ----- 0.5 hours of direct labor
9,140 ----- ?
= (9,140 × 0.5) / 1
= 4,570 hours.
Finally, we will multiply the total hours by the payment per hour, or direct labor rate; which is $13 per hour.
= 4,570 × $13
= $59,410
Therefore, the budgeted direct labor cost for the first quarter of the year is $59,410
