Question & Answer: The production budget for Manner Company shows units to be produced as follows: July, 600: August, 660: September, 520. Each unit produc…..

The production budget for Manner Company shows units to be produced as follows: July, 600; August, 660 September, 520. Each unit produced requires two hours of direct labor. The direct labor rate is currently $15 per hour but is predicted to be $15.75 per hour in September Prepare a direct labor budget for the months July, August, and Septomber. (Round your Labor rato to 2 decimal places.) MANNER COMPANY Direct Labor Budget For July, August, and September July August September Budgeted production (units) 600 660 620 units Total labor hours needed Labor dollars

The production budget for Manner Company shows units to be produced as follows: July, 600: August, 660: September, 520. Each unit produced requires two hours of direct labor. The direct labor rate is currently $15 per hour but is predicted to be $15.75 per hour in September. Prepare a direct labor budget for the months July, August, and September. (Round your “Labor rate” to 2 decimal places.)

Expert Answer

 

Manner Company
Direct Labor Budget
For July, August and September
July August September
Budgeted production(units) 600 660 520
Labor hours per unit 2 2 2
Total labor hours needed 1200 1320 1040
Cost per labor hour 15 15 15.75
Labor dollars 18000 19800 16380
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