Direct Labor Budget - is $10. Illustration 20-9 shows these...

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Direct Labor Budget Like the direct materials budget, the direct labor budget contains the quantity (hours) and cost of direct labor necessary to meet production requirements. The total direct labor cost is derived from the following formula. Illustration 20-8 Formula for direct labor cost Direct labor hours are determined from the production budget. At Hayes Company, two hours of direct labor are required to produce each unit of finished goods. The anticipated hourly wage rate
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Unformatted text preview: is $10. Illustration 20-9 shows these data. Illustration 20-9 Direct labor budget Helpful Hint An important assumption in Illustration 20-9 is that the company can add to and subtract from its work force as needed so that the $10 per hour labor cost applies to a wide range of possible production activity. The direct labor budget is critical in maintaining a labor force that can meet the expected levels of production....
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.

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Direct Labor Budget - is $10. Illustration 20-9 shows these...

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