Direct Labor Budget Evans Company produces asphalt roofing materials. The produc
ID: 2408509 • Letter: D
Question
Direct Labor Budget
Evans Company produces asphalt roofing materials. The production budget in bundles for Evans' most popular weight of asphalt shingle is shown for the following months:
Each bundle produced requires (on average) 0.40 direct labor hours. The average cost of direct labor is $20 per hour.
A direct labor budget for March, April, and May, showing the hours needed and the direct labor cost for each month and in total. Do not include a multiplication symbol as part of your answer.
Units March 4,000 April 13,000 May 14,400 June 17,000Explanation / Answer
Evans Company Direct labor budget
March
April
May
Total
Units to be produced
4000
13000
14400
31400
Direct labor time per unit (hours)
0.40
0.40
0.40
0.40
Total hours needed
1600
5200
5760
12560
Cost per hour
$20
$20
$20
$20
Total direct labor cost
$32000
$104000
$115200
$251200
Evans Company Direct labor budget
March
April
May
Total
Units to be produced
4000
13000
14400
31400
Direct labor time per unit (hours)
0.40
0.40
0.40
0.40
Total hours needed
1600
5200
5760
12560
Cost per hour
$20
$20
$20
$20
Total direct labor cost
$32000
$104000
$115200
$251200
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