Alpha Caps Company has budgeted production of 14,000 units and sales of 16,500 units in January.Each unit requires 12 minutes of labor.The standard labor rate is $13.00 per hour.How much are total budgeted direct labor costs for January?

Question

Quizplus · Accepted Answer

Total budgeted direct labor costs = (Budgeted production units * Labor time per unit) * Standard labor rate= (14,000 units * 12 minutes per unit) * ($13.00 per hour / 60 minutes per hour)= (14,000 units * 0.2 hours per unit) * $13.00 per hour= 2,800 hours * $13.00 per hour= $36,400

Alpha Caps Company Has Budgeted Production of 14,000 Units and Sales