Depasquale Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.41 direct labor-hours. The direct labor rate is $8.10 per direct labor-hour. The production budget calls for producing 5,000 units in May and 5,400 units in June. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?

Question

Quizplus · Accepted Answer

The total direct labor cost is calculated by multiplying the total direct labor-hours needed by the direct labor rate. For May: 5,000 units * 0.41 hours/unit = 2,050 hours. For June: 5,400 units * 0.41 hours/unit = 2,214 hours. Total hours for both months = 2,050 + 2,214 = 4,264 hours. Total cost = 4,264 hours * $8.10/hour = $34,538.40.

Depasquale Corporation Is Working on Its Direct Labor Budget for the Next