Direct Labor Budget Shamokin Manufacturing produces two products , Big and Bigge
ID: 2372679 • Letter: D
Question
Manufacturing
produces two products, Big and
Bigger. Shamokin expects
to sell 20,000 units of Big and 10,000 units of Bigger. Shamokin plans
on having an ending inventory of 4,000 units of Big and 2,000 units of Bigger.
Currently, Shamokin has 1,000 units of Big in its inventory and 800 units of
Bigger. Each product requires two labor operations: molding and polishing.
Product Big requires one hour of molding time and one hour of polishing time.
Product Bigger requires one hour of molding time and two hours of polishing
time. The direct labor rate for molders is $20 per molding hour, and the direct
labor rate for polishers is $25 per polishing hour.
Required:
Prepare a direct labor budget in hours and dollars for
each product.
Please answered it more specific and detailed. Thanks
Explanation / Answer
Labour Budget
Big Bigger
Total Units to be Sold + Closing inventory: 24000 12000
Opening Inventory -1000 -800
Units to be produced 23000 11200
Labour Budget (Hourly)
Product Big Product Bigger
Molding 23000 11200
Polishing 23000 22400
Total Hours 46000 33600
Labour Budget(Dollars)
Product Big Product Bigger
Molding $460000 $224000
Polishing $575000 $560000
Total Cost $1035000 $784000
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