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 |