In: Accounting
Question 2.
Ayman Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.45 direct labor-hours. The direct labor rate is $11.5 per direct labor-hour. The production budget calls for producing 3500 units in April and 4000 units in May. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?
Question 3.
Jack Inc has forecast production for the next three months as follows: January 3000 units, February 4000 units, March 4500 units. Monthly manufacturing overhead is budgeted to be $20,000 plus $3.5 per unit produced. What would be the total combined budgeted manufacturing overhead for February and March?