BACK cxercise 43- Rodriguez, Inc., is preparing its direct labor budget for 2017

Question

BACK cxercise 43- Rodriguez, Inc., is preparing its direct labor budget for 2017 from the following production budget based on a calendar year Quarter Units Quarter Units 20,110 25,410 35,370 30,440 Each unit requires 1.70 hours of direct labor Prepare a direct labor budget for 2017. Wage rates are expected to be $18 for the first 2 quarters and $20 for quarters 3 and 4. (Round Direct labor time per unit answers to 2 decimal places, e.g. 52.28.) RODRIQUEZ, INC Direct Labor Budget Quarter 20,110 4,187 18 615,866 615,866 7546 120,280s 103,4960

Explanation / Answer

Direct labour budget :

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Production units 20110 25410 35370 30440 Labour hour per unit 1.70 1.70 1.70 1.70 Production labour hour 34187 43197 60129 51748 Rate per hour 18 18 20 20 Direct labour cost 615366 777546 1202580 1034960 3630452

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