Asked by ESTELA LUCCHESI on Jun 16, 2024
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Sthilaire Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.34 direct labor-hours. The direct labor rate is $11.00 per direct labor-hour. The production budget calls for producing 8,000 units in April and 8,300 units in May. The direct labor workforce is fully adjusted each month to the required workload.Required:Construct the direct labor budget for the next two months.
Direct Labor Budget
A forecast of the labor costs directly associated with production, factoring in anticipated hourly rates and hours needed.
Direct Labor-Hours
The total hours worked by employees directly involved in the manufacturing process, used as a base for allocating overheads.
Direct Labor Rate
The cost per hour for direct labor, typically used in calculating the total direct labor cost for a product or job.
- Establish direct labor needs and expenses in line with production requirements.
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Learning Objectives
- Establish direct labor needs and expenses in line with production requirements.
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