Flores Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.07 direct labor-hours. The direct labor rate is $8.50 per direct labor-hour. The production budget calls for producing 4,800 units in June and 5,300 units in July.Required:Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month.
What will be an ideal response?
| June | July | |||||
| Required production in units | 4,800 | 5,300 | ||||
| Direct labor-hours per unit | 0.07 | 0.07 | ||||
| Total direct labor-hours needed | 336 | 371 | ||||
| Direct labor cost per hour | $ | 8.50 | $ | 8.50 | ||
| Total direct labor cost | $ | 2,856.00 | $ | 3,153.50 | ||
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