Ford Corporation is pulling together its direct labor budget for the next two months. Each unit...

Ford Corporation is pulling together its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $7.80 per direct labor-hour. The production budget calls for producing 5,200 units in June and 5,700 units in July.

Required:

Prepare the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places.)

	June	July
Required production in units
Direct labor-hours per unit
Total direct labor-hours needed
Direct labor cost per hour
Total direct labor cost

Expert Solution



CALCULATION OF DIRECT LABOR BUDGET FOR MONTH OF JUNE AND JULY
PARTICULARS	JUNE		JULY
Required production in units (A)	5,200	Hrs	5,700	Hrs
Direct Labor hours per unit (B)	0.50	Hrs	0.50	Hrs
Total Direct labor hours needed ( C = A X B)	2,600	Hrs	2,850	Hrs
Direct labor cost per hour (D)	$7.80	Per DLH	$7.80	Per DLH
Total Direct labor Cost ( E = C X D)	$20,280		$22,230





Answer =
Total Direct labor cost of June =	$20,280
Total Direct labor cost of July =	$22,230

ekkarill92 answered 5 months ago

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