value: 200 points Morne Corporation is working on its direct labor budget for th

Question

value: 200 points Morne Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.74 direct labor-hours. The direct labor rate is $11.70 per direct labor-hour. The production budget calls for producing 6,600 units in March and 6,400 units in April. The company guarantees its direct labor workers a 40-hour pald work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What woutd be the total combined direct labor cost for the two months? $130,291.20 O $119 527 20 O $112.554.00 O $12823200

Explanation / Answer

Answer is $ 128,232

Explanation:

LABOUR COST BUDGETS March April Total Units to be produced 6,600 6,400 13,000 Labour required per unit 0.74 0.74 0.74 Labour hours 4884 4736 9620 Minimum Commitment in hrs 5480 5480 10960 Labour horus to be paid 5480 5480 10960 Labuor Rate per hour 11.7 11.7 11.7 Budgeted Labour cost in $ 64,116 64,116 128,232

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