LaFontaine Hockey Products Corporation makes and sells a product called the glow

Question

LaFontaine Hockey Products Corporation makes and sells a product called the glow puck. Each glow puck unit produced requires 4.3 hours of direct labor at the rate of $22.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

The company plans to sell 26,000 units of glow pucks in June. The finished goods inventories on June 1 and June 30 are budgeted to be 480 and 60 units, respectively.

Required.

Calculate the total budgeted direct labor costs for June for producing glow pucks. (Do not round intermediate calculations.)

Budgeted Direct Labor Cost for June: _______

Explanation / Answer

Budgeted sales          26,000 Add: ending inventory                480 Less: Beginning inventory                (60) Budgeted production          26,420 Required labour hour per unit 4.3 Total required labour hour (26,420*4.30)        113,606 Hourly rate $22 Budgeted direct labor cost (113,606*$22) $2,499,332

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