?73% 2:56 Chapter 9 Quiz ezto.mheducation.com/hm.tpx E connect 13. 200points For

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Question

?73% 2:56 Chapter 9 Quiz ezto.mheducation.com/hm.tpx E connect 13. 200points Ford Corporation is pulling together 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 Required Prepare 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.)

Explanation / Answer

Prepare direct labor budget:

Details

June

July

Required production in units

3,800

4,300

Direct labor hours per unit

0.05

Total direct labor hours needed

190

215

Direct labor cost per hour

$ 9.90

Total direct labor cost

$ 1,881.00

$ 2,128.50

Therefore, total direct labor cost for June and July are $1,881.00 and $2,128.50 respectively.