Whitmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $11.80 per direct labor-hour. The production budget calls for producing 7,100 units in February and 6,800 units in March.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?
| February | March | |||||
| Required production in units | 7,100 | 6,800 | ||||
| Direct labor-hours per unit | 0.05 | 0.05 | ||||
| Total direct labor-hours needed | 355 | 340 | ||||
| Direct labor cost per hour | $ | 11.80 | $ | 11.80 | ||
| Total direct labor cost | $ | 4,189 | $ | 4,012 | ||
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