Grafton budgets production of 300 units in June and 310 units in July. Each unit requires 1.5 hours of direct labor. The direct labor rate if $14 per hour. The indirect labor rate is $21.00 per hour. Compute the budgeted direct labor cost for July.

Question

Quizplus · Accepted Answer

For July, the budgeted direct labor cost is calculated as follows: 310 units * 1.5 hours/unit * $14/hour = $6,510.

Grafton Budgets Production of 300 Units in June and 310