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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