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Kindschuh Corporation is working on its direct labor budget for the next two mon

ID: 2474239 • Letter: K

Question

Kindschuh Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.04 direct labor-hours. The direct labor rate is $9.10 per direct labor-hour. The production budget calls for producing 4,500 units in June and 5,000 units in July.

Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)


Required:

Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Explanation / Answer

               June                 July   Required production in units 4,500 5,000   Direct labor-hours per unit 0.04 0.04   Total direct labor-hours needed 180 200   Direct labor cost per hour $9.1 $9.1   Total direct labor cost $1,638 $1,820