**4.4 Direct Labor Budget for the Next Five Years****Direct Labor Budget Overview**The direct labor budget is essential to determine the number of labor hours required for production. It computes the overall hours needed and the breakdown by labor type.| Years | 2023 | 2024 | 2025 | 2026 | 2027 | Total ||-------|------|------|------|------|------|-------|| **Required production in units** | 4200 | 5200 | 6200 | 7200 | 8200 | 31000 || **Direct labor hours per unit** | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 || **Total direct labor-hours needed** | 1,050 | 1,300 | 1,550 | 1,800 | 2,050 | 7,750 || **Direct labor cost per hour** | $32 | $32 | $32 | $32 | $32 | $32 || **Total Direct Labor Cost** | $33,600 | $41,600 | $49,600 | $57,600 | $65,600 | $248,000 |**Explanation:**- **Required production in units**: The number of units projected for production each year.- **Direct labor hours per unit**: Fixed at 0.25 hours across all years, reflecting the time required to produce each unit.- **Total direct labor-hours needed**: Calculated by multiplying required production by direct labor hours per unit.- **Direct labor cost per hour**: Set at $32 for each year.- **Total Direct Labor Cost**: The overall expenditure on labor, based on the total labor hours and cost per hour.

The direct labor budget is what's used to figure out how many man-hours will be required to produce…

4.4 Prepare a direct labor budget for each of the upcoming five years. Direct Labor Budget To determine how many labor hours will be required to create the items listed in the cost of production, the direct labor budget is used. A more intricate direct labor budget will compute both the overall number of hours required and the breakdown of those hours by labor type. Years Required production in 4200 units Direct labor hours per 0,25 unit Total direct labor- hours needed 2023 Direct labor cost per hour Total Direct Labor Cost 1,050 $32 $33600 2024 5200 0,25 1,300 $32 $41600 2025 6200 0,25 1,550 $32 2026 7200 0,25 1,800 $32 2027 8200 0,25 2,050 $32 $49600 $57600 $65600 Total 31000 0,25 7,750 $32 $248000

4.4 Prepare a direct labor budget for each of the upcoming five years. Direct Labor Budget To determine how many labor hours will be required to create the items listed in the cost of production, the direct labor budget is used. A more intricate direct labor budget will compute both the overall number of hours required and the breakdown of those hours by labor type. Years Required production in 4200 units Direct labor hours per 0,25 unit Total direct labor- hours needed 2023 Direct labor cost per hour Total Direct Labor Cost 1,050 $32 $33600 2024 5200 0,25 1,300 $32 $41600 2025 6200 0,25 1,550 $32 2026 7200 0,25 1,800 $32 2027 8200 0,25 2,050 $32 $49600 $57600 $65600 Total 31000 0,25 7,750 $32 $248000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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4.4 Prepare a direct labor budget for each of the upcoming five years. Labor = $8
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