LaFontaine Hockey Products Corporation makes and sells a product called the glow

Question

LaFontaine Hockey Products Corporation makes and sells a product called the glow puck. Each glow puck unit produced requires 2.6 hours of direct labor at the rate of $22.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

The company plans to sell 45,000 units of glow pucks in June. The finished goods inventories on June 1 and June 30 are budgeted to be 570 and 130 units, respectively.

Required.

Calculate the total budgeted direct labor costs for June for producing glow pucks. (Do not round intermediate calculations.)

Budgeted Direct Labor Cost for June:

Explanation / Answer

Answer:- No. of glow pucks produced = Sales unit+ Closing inventory of finished goods - Opening inventory of finished goods   

=45000 units+130 units-570 units

=44560 units

Each glow puck unit produced requires 2.6 hours of direct labor at the rate of $22 per direct labor-hour.

No. of direct labor hours =44560 units*2.6 hours =115856 hours

Budgeted direct labor cost for june =115856 hours*$22 per direct labor hour

=$2548832

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