Matting’s Ice Cream Co. budgeted production of 925,000 tubs of ice cream for the
ID: 2554835 • Letter: M
Question
Matting’s Ice Cream Co. budgeted production of 925,000 tubs of ice cream for the year. Each tub requires filling. Assume that 2 minutes are required to fill each tub. If filling costs $12 per hour, determine the direct labor cost budget for the year. Matting’s Ice Cream Co. budgeted production of 925,000 tubs of ice cream for the year. Each tub requires filling. Assume that 2 minutes are required to fill each tub. If filling costs $12 per hour, determine the direct labor cost budget for the year. Matting’s Ice Cream Co. budgeted production of 925,000 tubs of ice cream for the year. Each tub requires filling. Assume that 2 minutes are required to fill each tub. If filling costs $12 per hour, determine the direct labor cost budget for the year.Explanation / Answer
filling costs/tub=$12/hour*(2/60)hours
=$0.4
Hence direct labor cost budget for the year=($0.4*925000)
=$370,000