Question

The production budget for Manner Company shows units to be produced as follows: July, 650; August, 710; and September, 570. Each unit produced requires one hour of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September. Prepare a direct labor budget for the months July, August, and September.

Answer 1

Answer:

Results are below.

Explanation:

Giving the following information:

Production:

July= 650 units

August= 710 units

September= 570 units

Each unit produced requires one hour of direct labor.

he direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September.

We need to prepare the direct labor budget:

July:

Direct labor= (650*1)*16= $10,400

August:

Direct labor= (710*1)*16= $11,360

September:

Direct labor= (570*1)*16.75= $9,547.5