Brief Exercise 21-5 For Gundy Company, units to be produced are 5,430 in quarter

Question

Brief Exercise 21-5 For Gundy Company, units to be produced are 5,430 in quarter 1 and 6,400 in quarter 2. It takes 1.5 hours to make a finished unit, and the expected hourly wage rate is $15 per hour.
Prepare a direct labor budget by quarters for the 6 months ending June 30, 2017.

Brief Exercise 21-5 For Gundy Company, units to be produced are 5,430 in quarter 1 and 6,400 in quarter 2. It takes 1.5 hours to make a finished unit, and the expected hourly wage rate is $15 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30, 2017. GUNDY COMPANY Direct Labor Budget Quarter Sis Mesths Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

The direct labour budget is as below:

Particulars Quarter 1 Quarter 2 Six Months Units to be produced 5430 6400 Hours per unit 1.5 1.5 Hours required for production 8145 9600 Hourly wage rate $15 $15 Budgeted labour cost $1,22,175 $1,44,000 $2,66,175

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