Moriah Manufacturing Company expects to incur the following per unit costs for 1,000 units of production: $$\begin{array} { l l }
\text { Direct materials } & 3 \mathrm { lb } @ \$ 5 = \$ 15 \
\text { Direct labor } & 1 \text { hr } @ 6 = \$ 6 \
\text { Variable overhead } & 75 \% \text { of direct } \
& 1 \text { labor costs } \
\text { Fixed overhead } & 50 \% \text { of direct } \
& 1 \text { abor costs }
\end{array}$$ What is the total amount of direct labor included in the direct labor budget?

Question

Moriah Manufacturing Company expects to incur the following per unit costs for 1,000 units of production: $$\begin{array} { l l } 
\text { Direct materials } & 3 \mathrm { lb } @ \$ 5 = \$ 15 \
\text { Direct labor } & 1 \text { hr } @ 6 = \$ 6 \
\text { Variable overhead } & 75 \% \text { of direct } \
& 1 \text { labor costs } \
\text { Fixed overhead } & 50 \% \text { of direct } \
& 1 \text { abor costs }
\end{array}$$ What is the total amount of direct labor included in the direct labor budget?

Quizplus · Accepted Answer

The total amount of direct labor included in the direct labor budget for 1,000 units of production is calculated as 1,000 units * $6 per unit = $6,000.

Moriah Manufacturing Company Expects to Incur the Following Per Unit