Webster Corporation is preparing a master budget for the first quarter of the year.The company budgets production of 2,680 units in January,2,600 units in February and 2,740 units in March.Each unit requires 0.6 hours of direct labor.The direct labor rate is $12 per hour.Compute the budgeted direct labor cost for the first quarter budget.

Question

Quizplus · Accepted Answer

The total units for the quarter are 2,680 + 2,600 + 2,740 = 8,020 units. Each unit requires 0.6 hours, so total hours = 8,020 * 0.6 = 4,812 hours. At $12 per hour, the total cost is 4,812 * $12 = $57,744.

Webster Corporation Is Preparing a Master Budget for the First