sthilaire corporation is working on its direct labor budget for next twoo months

Question

sthilaire corporation is working on its direct labor budget for next twoo months. each unit of output requires 0.34 direct labor hours.  

Direct labor rate is $ 11.10 per direct labor hour. the production budget calls for producing 8000 units in april and 8300 units in may. the compnay quarantees its direct labor workers a 40 hours paid work week. with the numbers of workers currently employed. that means that the company is committed to paying its direct labor work force for at least 2840 in total each month even if there is not enough work to keep them busy.

A. Construct the direct labor budget for next two months.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars April May Production in Units                       8,000.00                                 8,300.00 Hours per unit                                0.34                                         0.34 Total hours required                       2,720.00                                 2,822.00 Minimum hours to be paid                       2,840.00                                 2,840.00 Higher of minimum hours or actual hours                       2,840.00                                 2,840.00 Direct Labour rate per hour                             11.10                                       11.10 Total Direct Labour cost                     31,524.00                              31,524.00

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