Emeric and Ellie’s Painting Service estimates that it will paint 17 small homes,
ID: 2521807 • Letter: E
Question
Emeric and Ellie’s Painting Service estimates that it will paint 17 small homes, 6 medium homes, and 3 large homes during the month of June 2017. The company estimates its direct labor needs as 44 hours per small home, 85 hours for a medium home, and 134 hours for a large home. Its average cost for direct labor is $27 per hour.
Prepare a direct labor budget for Emeric and Ellie’s Painting Service for June 2017.
Small
Medium
Large
Total
Emeric and Ellie’s Painting ServiceDirect Labor Budget
June 30, 2017For the Month Ending June 30, 2017For the Quarter Ending June 30, 2017
Small
Medium
Large
Total
Total direct labor costDirect labor cost per hourSales budgetDirect labor time (hours) per houseDirect materials budgetHomes to be paintedTotal required direct labor hoursProduction budget
Direct labor cost per hourTotal direct labor costDirect materials budgetHomes to be paintedSales budgetProduction budgetDirect labor time (hours) per houseTotal required direct labor hours
Homes to be paintedTotal direct labor costDirect labor time (hours) per houseDirect materials budgetTotal required direct labor hoursSales budgetDirect labor cost per hourProduction budget
Total required direct labor hoursTotal direct labor costDirect labor cost per hourSales budgetDirect labor time (hours) per houseProduction budgetHomes to be paintedDirect materials budget
$ $ $Direct labor time (hours) per houseTotal direct labor costSales budgetProduction budgetDirect labor cost per hourDirect materials budgetHomes to be paintedTotal required direct labor hours
$ $ $ $Explanation / Answer
LARGE
Therefore, total budgeted cost = $44820
Labor cost budget PARTICULARS SMALL MEDIUMLARGE
Labor hrs per house 44 85 134 No. of houses 17 6 3 Total hours needed 748 510 402 Rate per hour of labor $27 $27 $27 Total labor cost budgeted $20196 $13770 $10854Related Questions
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