Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following production volumes:
Each Daytripper backpack requires 1 hour of direct labor and each Excursion backpack requires 2.5 hours of direct labor.
If the total budgeted labor for August is 5,000 hours, how much indirect labor did Teton budget?

Question

Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following production volumes:
 Each Daytripper backpack requires 1 hour of direct labor and each Excursion backpack requires 2.5 hours of direct labor.
If the total budgeted labor for August is 5,000 hours, how much indirect labor did Teton budget?

Quizplus · Accepted Answer

Total budgeted labor hours = Budgeted direct labor + Budgeted indirect labor
5,000 = ((1 hr. x 2,200 units) + (2.5 hrs. x 900 units) + Budgeted indirect labor
5,000 = 4,450 hours + Budgeted indirect labor
Budgeted indirect labor = 550 hours

Teton Trails Manufactures Backpacks for Adventurers