| Ans. | PRESTON INC. | |||
| Direct Labor Budget | ||||
| For the Months of July and August | ||||
| July | August | |||
| Budgeted production (units) | 260 | 380 | ||
| (X) Direct labor hours | 3 | 3 | ||
| Total labor hours needed | 780 | 1140 | ||
| (X) Wages rate per hour | $12 | $12 | ||
| Budget direct labor cost | $9,360 | $13,680 | ||
| *Total labor hours needed = units to be produced * direct labor hours | ||||
| *Budgeted direct labor cost = Total labor hours needed * Wages rate per hour | ||||
Preston, Inc, manufactures wooden shelving units for collecting and sorting mail. The company expects to produce...
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