Production budget-calculate total direct labor cost

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Reference no: EM131955309

Tangshang Industries production budget from the 2nd quarter of 2018, projected the following amounts of units to be produced:

April 1,000 units

May 1,200 units

June 1,250 units

Each unit requires 2 parts of component A and 3 parts of component B. Component A cost is $1.25 per unit and component B cost is $.80 per unit.

Each unit requires the following labor:

2 hours in the processing department

1 hour in the assembly department

Processing department labor rate is $4/hour

Assembly department labor rate is $6/hour

Using the information from the production budget of Tangshang Industries

A. Calculate Total Direct Labor Cost in the processing department for the quarter April – June 2018.

B. Calculate Total Direct Labor Cost for June 2018.

C. Calculate Total Direct Labor Cost for the quarter April – June 2018.

Reference no: EM131955309

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