Asked by Prutha Patel on Apr 24, 2024
Smith Corporation makes and sells a single product called a Pod. Each Pod requires 2.7 direct labor-hours at $10.90 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 23,300 Pods. Budgeted direct labor costs incurred in June would be: (Round your intermediate calculations to 2 decimal places.)
A) $870,763
B) $685,719
C) $314,880
D) $253,970
Direct Labor-Hours
The total hours worked by employees who are directly involved in the manufacturing or production process.
Direct Labor Budget
An estimate of the total labor cost and time required for the production process over a specific period.
Budgeted Costs
Estimated costs for a future period, used for planning and control purposes in budgeting process.
- Project financial outcomes within the budget, such as the cost of goods sold, expenditures on direct labor, and procurement expectations.
- Examine the performance of production and the allocation of labor in the context of budgeting activities.
Learning Objectives
- Project financial outcomes within the budget, such as the cost of goods sold, expenditures on direct labor, and procurement expectations.
- Examine the performance of production and the allocation of labor in the context of budgeting activities.
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