Question
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 agoRelated Solutions
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