Kindschuh Corporation is working on its direct labor budget for the next two mon

Question

Kindschuh Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $9.90 per direct labor-hour. The production budget calls for producing 3,800 units in June and 4,300 units in July.

Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Required:

Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Explanation / Answer

Hi,

Please find the detailed answer as follows:

Notes:

1) Total direct labor-hours needed = Required production in units*Direct labor-hours per unit

2) Total direct labor cost = Total direct labor-hours needed*Direct labor cost per hour

Thanks.

June July Required production in units 3800 4300 Direct labor-hours per unit 0.05 0.05 Total direct labor-hours needed 190 215 Direct labor cost per hour 9.9 9.9 Total direct labor cost 1881.00 2128.50

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