Question
Completed using excel if possible 2. Direct labor budget: Draper Manufacturing Inc. plans to produce a...
Completed using excel if possible
2. Direct labor budget: Draper Manufacturing Inc. plans to produce a number of units of product Z during the budget period. The units are all within a limited size range, so the amount of processing labor related to each one is nearly identical. The labor routing for each unit is 0.65 hours per unit for the machine operator. The labor rate for machine operators is $31 per direct labor hour. Production for each quarter is as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Product Z (units) 5,000 6,000 7,000 8,000 Required: Prepare a direct labor budget for the four quarters and the year
Answers
No of units to be produced Multiply Direct Labor Hour per unit Total direct labor hour required Multiply Rate Per Hour Total Direct labor Cost Direct Labor Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year 5000 6000 7000 8000 0.65 0.65 0.65 0.65 3250 3900 4550 5200 - 31$ 31$ 31$ 31$ $ 100,750 $ 120,900 $ 141,050 $ 161,200 $ 26000 0.65 16900 31 523,900 Multiply number of units to be produced with DLH per unit, we get total hours required. To calculate DL cost, multiply hours required with rate hour hour.
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