Question

Each sneaker requires 2 hours of direct labor time. Direct labor wages average $15 per hour. Monthly overhead averages $10 per direct labor hour plus fixed overhead of $4,500. What is the direct labor cost budgeted for September

Answer 1

Answer:

the direct labor cost budgeted is $1,500,000

Explanation:

The computation of the direct labor cost budgeted is given below:

The Direct labor budget for September is

= September production × required no of hours × direct labor wage per hour

= 50,000 × 2hour × $15

= $1,500,000

hence, the direct labor cost budgeted is $1,500,000