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Ironton Products has a production budget as follows: May, 13,500 units; June, 16,500 units; and July, 21,500 units. Each unit requires 2 labor hours at $12 per hour. What would be the budgeted direct labor cost for June

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facundobuzzetti

Answer:

Direct labor cost= $396,000

Explanation:

Giving the following information:

Production:

May, 13,500 units

June, 16,500 units

July, 21,500 units.

Each unit requires 2 labor hours at $12 per hour.

First, we need to calculate the number of hours required for June:

Number of direct labor hours= 16,500*2= 33,000 hours

Now, the direct labor cost:

Direct labor cost= 33,000*12= $396,000

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