B Grills is a successful manufacturer of BBQ grills. Its sales budget indicates

Question

B Grills is a successful manufacturer of BBQ grills. Its sales budget indicates that 4,600 grills are estimated to be sold and 4,720 estimated to be produced. In estimating the total budgeted direct labor for the next year, the Controller assembled the following data:

            Standard average wage rate = $21 per hour

            Fringe benefits = $2.60 per hour

            Total budgeted direct labor hours for each grill = 2 hours and 18 minutes

      What amount will the company budget as direct labor for next year?

Explanation / Answer

Statement showing computations Particulars Amount Standard Wages = 4720*21 *2.3                  227,976.00 Fringe Benefits = 4720*2.60*2.30                     28,225.60 Total direct Labour Cost                  256,201.60

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