In: Accounting
16
Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.09 direct labor-hours. The direct labor rate is $8.50 per direct labor-hour. The production budget calls for producing 5,600 units in June and 6,100 units in July. |
Required: | ||||||||||||||||||
Construct 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.)
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Please follow the 'working' column for calculation:
Working | JUne | JUly | |
A | Required Production in Units | 5600 | 6100 |
B | Direct labor hours per unit | 0.09 | 0.09 |
C = A x B | total direct labor hours needed | 504 | 549 |
D | direct labor cost per hour | $ 8.50 | $ 8.50 |
E = C x D | total direct labor cost | $ 4,284.00 | $ 4,666.50 |