Direct labor budget

Direct labor budget - Pickup Trucks Company Direct Labor...

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Direct labor budget . The direct labor budget shows the number of direct labor hours and the cost of  the labor to determine the total cost of direct labor. Assume it takes one-half hour of labor to put  together one pickup truck and each labor hour costs $14.00. The total direct labor budget is for  50,113 (100,225 units × .5 hours per unit) hours at a cost of $701,575 ($14.00 per hour × 50,113  hours). The break out by quarter is shown in the following table. 
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Unformatted text preview: Pickup Trucks Company Direct Labor Budget For the Year 20X1 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Units to be produced 15,300 18,650 29,800 36,475 100,225 Direct labor hours per unit × .5 × .5 × .5 × .5 × .5 Total direct labor hours 7,650 9,325 14,900 18,237.5 50,112.5 Cost per hour ×$14.00 ×$14.00 ×$14.00 ×$14.00 ×$14.00 Cost of direct labor $107,100 $130,550 $208,600 $255,325 $701,575...
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