Calculate the total direct labor cost for the quarter if

Reference no: EM13567972

Capriati Corporation is working on its direct labor budget for the quarter. Each unit of output requires 0.36 direct labor-hours. The direct labor rate is $15.00 per direct labor-hour. The production budget calls for producing 2,500 units in June, 2,700 units in July and 3,000 units in September. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 1,000 hours in total each month even if there is not enough work to keep them busy.

Required: Using the template

Calculate the total direct labor cost for the quarter if the company follows its no lay-off policy, and pays time-and-a-half for every hour worked in excess of 1,000 hours in a month?

Capriotti Company
Direct Labor Budget
	June	July	August	Total
Required production in units
Direct labor-hours per unit
Total direct labor-hours needed
Total Direct labor-hours guaranted
Total Direct labor-hours paid
Direct labor cost per hour
Overtime hours Paid
Overtime Rate
Total direct labor cost

Regular Hours Paid
Overtime Hours Paid

Reference no: EM13567972

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