Kouba Corporation is working on its direct labor budget for the next two months.
ID: 2568714 • Letter: K
Question
Kouba Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.33 direct labor-hours. The direct labor rate is $8.00 per direct labor-hour. The production budget calls for producing 2,900 units in April and 2,800 units in May. 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 960 hours in total each month even if there is not enough work to keep them busy.
construct the direct labor budget get for the next two months. (Round your answers to 2 decimal places.)
construct the direct labor budget get for the next two months. (Round your answers to 2 decimal places.)
April May Required production in units Direct labor-hours per unit Total direct labor-hours needed Total direct labor-hours paid Direct labor cost per hour Total direct labor costExplanation / Answer
April
May
Required production in units
2900
2800
Direct labor-hours per unit
0.33
0.33
Total direct labor-hours needed
957
924
Total direct labor-hours paid
960
960
Direct labor cost per hour
$ 8.00
$ 8.00
Total direct labor cost
$ 7,680.00
$ 7,680.00
April
May
Required production in units
2900
2800
Direct labor-hours per unit
0.33
0.33
Total direct labor-hours needed
957
924
Total direct labor-hours paid
960
960
Direct labor cost per hour
$ 8.00
$ 8.00
Total direct labor cost
$ 7,680.00
$ 7,680.00
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