Direct Labor Cost Budget Dauber Publishers Inc budgeted prod

Direct Labor Cost Budget

Dauber Publishers Inc. budgeted production of 33,000 diaries in 2016. Each diary requires assembly. Assume that three minutes are required to assemble each diary.

If assembly labor costs $14 per hour, determine the direct labor cost budget for 2016. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar.

$__ ?

Solution

Labor cost per diary=(3/60)hours*$14 per hour

=$0.7

Hence total direct labor cost budget for 2016=($0.7*33000)

which is equal to

=$23100.