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For Gundy Company, units to be produced are 5,230 in quarter 1 and 6,100 in quarter 2. It takes 2.0 hours to make a finished unit, and the expected hourly wage rate is $15 per hour.

Required:
Prepare a direct labor budget by quarters for the 6 months ending June 30, 2017.

Respuesta :

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Answer:

Direct labor budget by quarters for the 6 months ending June 30, 2017

                                                      Quarter 1                 Quarter 2

Expected Production (units)               5,230                       6,100

Hours required per unit                          2.0                           2.0

Total Expected Hours                       10,460                      12,200

Cost per Hour                                         $15                           $15

Total Cost                                      $156,900                 $183,000

Explanation:

Total Expected Cost = Total Expected Hours × Total Cost per Hour

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