Prepare the direct labor budget

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Reference no: EM131939142

Degregorio Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.30 direct labor-hours. The direct labor rate is $8.50 per direct labor-hour. The production budget calls for producing 3,100 units in April and 3,000 units in May. 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 960 hours in total each month even if there is not enough work to keep them busy.

Required:

Prepare the direct labor budget for the next two months.

Required production in units April May

Direct labor hours per unit

Total direct labor hours needed

Total direct labor hours paid

Direct labor cost per hour

Total direct labor cost

Reference no: EM131939142

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