Chung Inc is preparing its direct labor budget for 2012 from the following produ

Question

Chung Inc is preparing its direct labor budget for 2012 from the following production budget based on calendar year

QTR       units

1            20500

2            25870

3           34640

4           30840

Each Unit requires 1.3 hrs of direct labor

Instructions

Prepare a direct labor budget for 2012. Wage rates are expected to be $15 for the first 2 quarters and $15 for quarters 3 and 4. (Round ans for direct labor time per unit to 1 decimal.

Chung Inc

Direct Labor budget

Fro Year ending Dec 31, 2012

                  QTR          1              2            3             4           Year

_______                   ______    _____    _____    _____

_______                   ______    _____    _____    _____

Total req direct labor hrs ______    _____    _____    _____

_______                   ______    _____    _____    _____

_______                   ______    _____    _____    _____

Total Direct labor cost ______    _____    _____    _____    _____________

Explanation / Answer

Hi,

Please find the answer as follows:

Thanks.

1 2 3 4 Year Units to be Produced 20500 25870 34640 30840 111850 Direct Labor Hours Per Unit 1.3 1.3 1.3 1.3 1.3 Total Required Labor Hours 26650 33631 45032 40092 145405 Direct Labor Cost Per Hour 15 15 15 15 15 Total Direct Labor Cost 399750 504465 675480 601380 2181075

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