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Lera25 [3.4K]
3 years ago
6

projects variable labor costs of $21,500 in March when 8,600 units are produced. If production is expected to drop to 8,000 unit

s in April, what is the expected labor cost in April
Business
1 answer:
dlinn [17]3 years ago
4 0

Answer:

Total direct labor cost=$20,000

Explanation:

<u>First, we need to calculate the direct labor cost per unit:</u>

<u></u>

Direct labor cost per unit= total cost / number of units

Direct labor cost per unit= 21,500 / 8,600

Direct labor cost per unit= $2.5

<u>Now, the total cost for 8,000 units:</u>

Total direct labor cost= 2.5*8,000

Total direct labor cost=$20,000

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Actual sales volume for a period is 5,000 units. budgeted sales volume is 4,500. actual selling price per unit is $15 and budget price per unit is $15. 75. the sales price variance is $3,750

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