Chung Inc is preparing its direct labor budget for 2012 from the following produ
ID: 2376842 • Letter: C
Question
Chung Inc is preparing its direct labor budget for 2012 from the following production budget based on calendar year
QTR units
1 20500
2 25870
3 34640
4 30840
Each Unit requires 1.3 hrs of direct labor
Instructions
Prepare a direct labor budget for 2012. Wage rates are expected to be $15 for the first 2 quarters and $15 for quarters 3 and 4. (Round ans for direct labor time per unit to 1 decimal.
Chung Inc
Direct Labor budget
Fro Year ending Dec 31, 2012
QTR 1 2 3 4 Year
_______ ______ _____ _____ _____
_______ ______ _____ _____ _____
Total req direct labor hrs ______ _____ _____ _____
_______ ______ _____ _____ _____
_______ ______ _____ _____ _____
Total Direct labor cost ______ _____ _____ _____ _____________
Explanation / Answer
Hi,
Please find the answer as follows:
Thanks.
1 2 3 4 Year Units to be Produced 20500 25870 34640 30840 111850 Direct Labor Hours Per Unit 1.3 1.3 1.3 1.3 1.3 Total Required Labor Hours 26650 33631 45032 40092 145405 Direct Labor Cost Per Hour 15 15 15 15 15 Total Direct Labor Cost 399750 504465 675480 601380 2181075