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Wildhorse's Salsa is in the process of preparing a production cost budget for May. Actual costs in April were:
Wildhorse's Salsa
Production Costs
April 2020
Production 25,000 Jars of Salsa
Ingredient cost (variable) $ 22,250
Labor cost (variable) 14,000
Rent (fixed) 5,000
Depreciation (fixed) 6,000
Other (fixed) 1,000
Total $ 48,250
Budgeted Production Costs
May 2020
30,000 Production Jars of Salsa
Ingredient cost $ 26,700
Labor cost $ 16,800
Rent $ 5,000
Depreciation $ 6,000
Other $ 1,000
Total $ 55,500
Problem 1: The budget does suggest additional workers are needed taking that into consideration Suppose the wage rate is $ 20 per hour. How many additional labor hours are needed in May?
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