Sugar Company is preparing its direct labor budget for 2017 from the following production budget based on a calendar year: Quarter Units 180,000...
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Question

Sugar Company is preparing its direct labor budget for 2017 from the following production budget based on a

calendar year:

                               Quarter                         Units 

                                   1                             80,000

                                   2                             40,000

                                   3                             60,000

                                   4                           100,000

Each unit requires 1.5 hours of direct labor. The union contract provides for a 10% increase in wage rate to $11 per hour on October 1.

 

 

Instructions

Prepare a direct labor budget for 2017

Top Answer

Total wages for quarter 1 = $1200000 Total wages for... View the full answer

Direct labor budget.png

Particulars
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Units Produced
80000
40000
60000
100000
Direct labor
1 .5
1 .5
1.5
1.5
hours required
for each unit
Total direct
80000 *1.5 =
40000 *1.5 =
6000...

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