Ch. 8 Budgeted Direct Labor Cost Formula Please provide the formula for solving the Budgeted Direct Labor Cost and show an example. Thanks

FINANCIAL ACCOUNTING
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Ch. 8 Budgeted Direct Labor Cost Formula

Please provide the formula for solving the Budgeted Direct Labor Cost and show an example.

Thanks

Expert Solution
Step 1

The budgeted direct labor cost indicate the cost of direct labor and the number of labor hours to be used in budgeted period. 

Following is the formula of Budgeted Direct Labor Cost:

Particulars 1st Q 2nd Q 3rd Q 4th Q Year
Total Units (A) XXX XXX XXX XXX XXXX
Direct Labor ( Per Unit) (B)   XX   XX   XX   XX   XX
Total number of direct labor hours required (C) =  (A*B) XXXX XXXX XXXX XXXX XXXX
Direct Labor (Per hour cost) (D)    XXX    XXX    XXX    XXX   XXX
Total cost of direct labor (E) = (C*D) XXXX XXXX XXXX XXXX XXXX

  

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