Margaret had just finished the production budget for her division and now needs to further consider related cash needs. Since labor costs are a significant cash outflow for her company, she opts to complete that budget next. The production budget ended as follows for the second quarter. Production (units) Month 1 7,300 Month 2 9,800 Month 3 7,000 Every unit requires 3.40 hours of DL time, which is estimated to cost the company $18/hour. Help Margaret prepare the direct labor budget for her company for the second quarter, identifying total DL hours as well as total DL cost for each month and for the quarter as a whole. (Round hours per unit to 2 decimal places, e.g. 15.25.)
Margaret had just finished the production budget for her division and now needs to further consider related cash needs. Since labor costs are a significant cash outflow for her company, she opts to complete that budget next. The production budget ended as follows for the second quarter. Production (units) Month 1 7,300 Month 2 9,800 Month 3 7,000 Every unit requires 3.40 hours of DL time, which is estimated to cost the company $18/hour. Help Margaret prepare the direct labor budget for her company for the second quarter, identifying total DL hours as well as total DL cost for each month and for the quarter as a whole. (Round hours per unit to 2 decimal places, e.g. 15.25.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Margaret had just finished the production budget for her division and now needs to further consider related cash needs. Since labor
costs are a significant cash outflow for her company, she opts to complete that budget next. The production budget ended as follows
for the second quarter.
Production (units)
Month 1
7,300
Textbook and Media
Month 2
9,800
Every unit requires 3.40 hours of DL time, which is estimated to cost the company $18/hour. Help Margaret prepare the direct labor
budget for her company for the second quarter, identifying total DL hours as well as total DL cost for each month and for the quarter
as a whole. (Round hours per unit to 2 decimal places, e.g. 15.25.)
$
Month 3
$
7,000
Month 1
$
Month 2
$
$
Month 3
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