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16 Rehmer Corporation is working on its direct labor budget for the next two months. Each...

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.)

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

Solutions

Expert Solution

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

ekkarill92 answered 2 years ago
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