Yandell Company expects to produce 1,880 units in January and 1,957 units in Feb

Question

Yandell Company expects to produce 1,880 units in January and 1,957 units in February. Yandell budgets five direct labor hours per unit. Direct labor costs average $15 per hour. Prepare Yandell's direct labor budget for January and February. Begin by preparing the direct labor budget for January and February through the total direct labor hours needed for production line and then complete the budget by calculating the budgeted direct labor cost. Yandell Company Direct Labor Budget Two Months Ended January 31 and February 28 February anuary Direct labor hours needed for production Budgeted direct labor cost

Explanation / Answer

Yandell Company Direct Labor Budget Two Months Ended January 31 and February 28 January February Units 1,880 1,957 Direct Labor hours per unit 5 5 Direct Labor hours needed for production 9,400 9,785 Direct Labor costs per hour $15 $15 Budgeted Direct Labor Cost $141,000 $146,775

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