Yem Company expects to produce 1,660 units in January and 1,962 units in Februar

Question

Yem Company expects to produce 1,660 units in January and 1,962 units in February. Yem budgets four direct labor hours per unit Direct labor costs average $9 per hour. Prepare Yen's drect labor budget for January and February Begin by preparing the direct labor budget for January and February through the totail direct labor hours needed for production line and then complete the budget by calculating the budgeted direct labor cost Yem Company Direct Labor Budget Two Months Ended January 31 and February 28 xt January February Direct labor hours needed for production

Explanation / Answer

Prepare direct labour budget :

January February production units 1660 1962 Labour hour per unit 4 4 Direct labour hour needed for production 6640 7848 Rate per labour hour 9 9 Direct labour cost 59760 70632

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