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Preparing a Direct Labor Budget Tulum Inc. makes a Mexican chocolate mix. Planned production in units for the first 3 months of the coming year is: January 24,700 February 22,000 March 30,200 Each box of chocolate mix takes 0.4 direct labor hour. The average wage is $17 per hour. Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter.

Respuesta :

Answer:

Jan = $306 in direct labour costs

Feb = $272 in direct labour costs

March = $357 in direct labour costs

Total for the quarter = $935 in direct labour costs

Explanation:

0.4 hours is 24 minutes

January

= 24 700 units / 24 minutes = 1029  

1029 minutes would be required for 24 700 units

1029 minutes / 60 = 17.15 hours. We round up to 18 hours

18 hours* $17 per hour = $306

Therefore, $306 in direct labour costs  in January

February

= 22 000 units / 24 minutes = 917  

917 minutes would be required to produce 22 000 units

917 minutes / 60 = 15.3 hours. We round up to 16 hours

16 hours * $17 per hour = $272

Therefore, $272 in direct labour costs  in February

March

= 30 200 units / 24 minutes = 1258  

1258 minutes would be required to produce 30 200 units

1258 minutes / 60 = 20.97 hours. We round up to 21 hours

21 hours * $17 per hour = $357

Therefore, $357 in direct labour costs  in March

Total for the quarter = 306 + 272 + 357 = 935

$935 in direct labour costs  for the first quarter

akiran007

Answer:

The direct labor costs for January ,February and March are   $ 167960

 $ 149600 and $ 205360 and total is    $ 522,920  

The direct labor hours for January ,February and March are   9880                 8800 and 12080  . Total Direct Labor hours are 30760

Explanation:

Tulum Inc.

Direct Labor Budget  

                            January             February          March        Total

Units              24,700                22,000               30,200        76,900

DLH per unit     0.4                       0.4                      0.4

DLHs                9880                 8800                 12080          30760

Wage/hr            $ 17                     $ 17                   $ 17

Wages           $ 167960          $ 149600            205360         $ 522,920  

The direct labor costs for January ,February and March are   $ 167960

 $ 149600 and $ 205360 and total is    $ 522,920  

The direct labor hours for January ,February and March are   9880                 8800 and 12080  . Total Direct Labor hours are 30760

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