Question

In: Accounting

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
Next > < Previous

Related Solutions

Q2.    ABC Corporation is working on its direct labor budget for the next two months. Each...
Q2.    ABC Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.40 direct labor-hours. The direct labor rate is SR 9 per direct labor-hour. The production budget calls for producing 2,500 units in January and 2,800 units in February. The company guarantees its direct labor workers at least 960 hours in total each month even if there is not enough work to keep them busy. Required: Construct the direct labor budget...
Question 2. Ayman Corporation is working on its direct labor budget for the next two months....
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....
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...
The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor...
The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,600 direct labor-hours will be required in January. The variable overhead rate is $7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,100 per month, which includes depreciation of $3,660. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Choice $61,300 $18,200 $57,640...
For each item used in the firm’s production budget and direct-labor budget, select the other components...
For each item used in the firm’s production budget and direct-labor budget, select the other components of the master budget (except for financial statement budgets) that also, directly, or indirectly, would use these data. Can you assist explaining which are correct for each and why/how they directly and indirectly use these data? Sales data: Selling and administrative expense budget Production-overhead budget Direct-material budget Cash budget Cost-of-goods-sold budget Sales budget Cash disbursements budget Production data: Selling and administrative expense budget Direct-material...
A Landscaping Inc. is preparing its budget for the first months of 2019. The next step...
A Landscaping Inc. is preparing its budget for the first months of 2019. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. 10% of all sales are for Cash. Credit customers usually pay 20% of their fee in the month that service is provided, 60% the month after, 18% the second month after receiving service. The remaining 2% is written off...
Budget Actual Direct labor hours. . . . . . . . . . . ....
Budget Actual Direct labor hours. . . . . . . . . . . . . . . . . . . . . . . . 7,600 hours 6,100 hours Machine hours. . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000 hours 6,500 hours Depreciation on salespeople's autos. . . . . . . . . . . $21,500 $21,500...
A significant difference between the direct material purchases budget and the direct labor budget is that...
A significant difference between the direct material purchases budget and the direct labor budget is that the direct material purchases budget Group of answer choices is constructed for each quarter, while the direct labor budget is constructed for each pay period. considers beginning and ending inventory amounts, which are not part of the direct labor budget. is based on units sold, while the direct labor budget is based on units produced. is constructed from the top down, while the direct...
Standard Costs, Decomposition of Budget Variances, Direct Materials and Direct Labor Haversham Corporation produces dress shirts....
Standard Costs, Decomposition of Budget Variances, Direct Materials and Direct Labor Haversham Corporation produces dress shirts. The company uses a standard costing system and has set the following standards for direct materials and direct labor (for one shirt): Fabric (1.5 yds. @ $2.80) $4.20 Direct labor (1.1 hr. @ $20) 22.00    Total prime cost $26.20 During the year, Haversham produced 9,500 shirts. The actual fabric purchased was 14,150 yards at $2.74 per yard. There were no beginning or ending inventories...
Standard Costs, Decomposition of Budget Variances, Direct Materials and Direct Labor Haversham Corporation produces dress shirts....
Standard Costs, Decomposition of Budget Variances, Direct Materials and Direct Labor Haversham Corporation produces dress shirts. The company uses a standard costing system and has set the following standards for direct materials and direct labor (for one shirt): Fabric (1.5 yds. @ $2.80) $4.20 Direct labor (1.1 hr. @ $20) 22.00    Total prime cost $26.20 During the year, Haversham produced 9,900 shirts. The actual fabric purchased was 14,750 yards at $2.74 per yard. There were no beginning or ending inventories...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT