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Addison Co. budgets production of 2,400 units during the second quarter. Other information is as follows:
Direct labor: Each finished unit requires 4 direct labor hours, at a cost of $20 per hour.
Variable overhead: Applied at the rate of $11 per direct labor hour.
Fixed overhead: Budgeted at $450,000 per quarter.
1. Prepare a direct labor budget.
2. Prepare a factory overhead budget.

Respuesta :

TomShelby

Answer:

Direct Labor hours 9,600

Direct Labor Cost $192,000

Factory Overhead $105,600

Explanation:

2,400 units

Direct Labor Hours

2,400 x 4hs x = 9,600

Dorect Labor Cost

9,600 hours x $20 = $192,000

Factory Overhead

9,600 hours x 11 = 105,600

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