QUESTION 5 Rehmer Corporation is working on its direct labor budget for the next

Question

QUESTION 5 Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.54 direct labor-hours. The direct labor rate is $10.40 per direct labor-hour. The production budget calls for producing 3000 units in June and 1400 units in July Construct the direct labor budget for June, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. What are the total budgeted direct labor cost for June? Round your answer to two decimal places and ignore the dollar sign.

Explanation / Answer

Hence the correct answer is 16,848

Direct labor  Budget for June Budgeted Production (Units) 3,000 Direct Labor Hours Per Unit 0.54 Total Direct Labor Hours Needed 1,620 Direct Labor Cost Per Hour 10.4 Total Budgeted Direct Labor Cost 16,848

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