Arwin Company's production budget is as follows: Each unit takes 20 minutes to produce and the standard labor rate is $15 per labor hour. What is Arwin's direct labor budget?

Name: Arwin Company's production budget is as follows: Each unit takes 20 minutes to produce and the standard labor rate is $15 per labor hour. What is Arwin's direct labor budget?
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Question

Arwin Company's production budget is as follows:  Each unit takes 20 minutes to produce and the standard labor rate is $15 per labor hour. What is Arwin's direct labor budget?

Quizplus · Accepted Answer

Budgeted units of production 210,000 x 1/3 hour each = 70,000 hours
70,000 hours x $15/hr. = $1,050,000

Arwin Company's Production Budget Is as Follows: Each Unit