Forty Winks Corporation manufactures night stands. The production budget shows that Forty Winks Corporation plans to produce 1800 night stands in March and 1400 night stands in April. Each night stand requires 0.50 direct labor hours in its production. Forty Winks Corporation has a direct labor rate of $19 per direct labor hour. What is the total combined direct labor cost that Forty Winks Corporation should budget in March and April?

Question

Quizplus · Accepted Answer

The total direct labor hours required for March is 1800 night stands * 0.50 hours = 900 hours. For April, it is 1400 night stands * 0.50 hours = 700 hours. The combined direct labor hours for both months is 900 + 700 = 1600 hours. At a rate of $19 per hour, the total direct labor cost is 1600 hours * $19 = $30,400.

Forty Winks Corporation Manufactures Night Stands