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In: Accounting

Burrell Company manufactures pottery. Production of large garden pots for the coming three months is budgeted...

Burrell Company manufactures pottery. Production of large garden pots for the coming three months
is budgeted as follows:
April 8,000 units
May 10,500 units
June 14,000 units
Each pot requires 1.6 hours of direct labor time at a cost of $15 per hour.
What is the direct labor cost budgeted for June?
a. $336,000.
b. $240,000.
c. $150,000.
d. $210,000

Solutions

Expert Solution

BURRELL COMPANY
Direct Labor Budget
For the month of April, May and June
April May June
Budgeted Production(in units)                          8,000                  10,500 14000
DL hours required per unit 1.6 1.6 1.6
Total Direct labor hours needed                        12,800                  16,800                     22,400
Direct labor rate per hour $15 $15 15
Total budgeted direct labor $1,92,000 $2,52,000 $3,36,000
So Option A is the answer

ekkarill92 answered 1 year ago
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