Question

Smith Corporation makes and sells a single product called a Pod. Each Pod requires 3.2 direct...

Smith Corporation makes and sells a single product called a Pod. Each Pod requires 3.2 direct labor-hours at $11.40 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. Smith Corporation is preparing a Direct Labor Budget for the second quarter of the year.

In June the company has budgeted to produce 23,800 Pods. Budgeted direct labor costs incurred in June would be: (Round your intermediate calculations to 2 decimal places.)

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Answer #1

Budgeted direct labor costs incurred in June would be: $868,224.00

Working

A Budgeted Units 23800
B Labor hours required per unit 3.2
C=A x B Total Labor hours required 76160
D Labor rate per hour $                  11.40
E=D x C Total Labor cost           868,224.00
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