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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