Direct Labor Cost Budget Pasadena Candle Inc. budgeted production of 27,000 candles for January. Each candle requires molding. Assume that four minutes are required to mold each candle. If molding labor costs $14.5 per hour, determine the direct labor cost budget for January. Round total direct labor cost to the nearest dollar, if required. Pasadena Candle Inc. Direct Labor Cost Budget For the Month Ending January 31 Hours required for assembly: Candles min. Convert minutes to hours ÷ min. Molding hours hrs. Hourly rate × $ Total direct labor cost $
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Direct Labor Cost Budget
Pasadena Candle Inc. budgeted production of 27,000 candles for January. Each candle requires molding. Assume that four minutes are required to mold each candle. If molding labor costs $14.5 per hour, determine the direct labor cost budget for January.
Round total direct labor cost to the nearest dollar, if required.
| Pasadena Candle Inc. Direct Labor Cost Budget For the Month Ending January 31 |
||||
| Hours required for assembly: | ||||
| Candles | min. | |||
| Convert minutes to hours | ÷ | min. | ||
| Molding hours | hrs. | |||
| Hourly rate | × | $ | ||
| Total direct labor cost | $ |
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