Edwards Corporation is working on its direct labor budget for the next two month

Question

Edwards Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.7 direct labor-hours. The direct labor rate is $8.50 per direct labor-hour. The production budget calls for producing 4,800 units in June and 5,300 units in July. The company guarantees its direct labor workers a 40-hour paid 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 3,640 hours in total each month even if there is not enough work to keep them busy.
Construct the direct labor budget for the next two months.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars June July Production in Units           4,800.00             5,300.00 Hours per unit                    0.70                      0.70 Total hours required           3,360.00             3,710.00 Minimum hours to be paid           3,640.00             3,640.00 Higher of minimum hours or actual hours           3,640.00             3,710.00 Direct Labour rate per hour                    8.50                      8.50 Total Direct Labour cost         30,940.00           31,535.00

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