Sthilaire Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.36 direct labor-hours. The direct labor rate is $7.60 per direct labor-hour. The production budget calls for producing 2,500 units in April and 2,400 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 960 hours in total each month even if there is not enough work to keep them busy. Required: Construct the direct labor budget for the next two months. (Round "labor-hours per unit" & "labor cost per hour" answers to 2 decimal places.) Required production in units. Direct labor-hours per unit Total direct labor-hours needed Total direct labor-hours paid Direct labor cost per hour Total direct labor cost April May

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sthilaire Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.36 direct labor-hours.
The direct labor rate is $7.60 per direct labor-hour. The production budget calls for producing 2,500 units in April and 2,400 units in
May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed,
that means that the company is committed to paying its direct labor work force for at least 960 hours in total each month even if there
is not enough work to keep them busy.
Required:
Construct the direct labor budget for the next two months. (Round "labor-hours per unit" & "labor cost per hour" answers to 2
decimal places.)
Required production in units.
Direct labor-hours per unit
Total direct labor-hours needed
Total direct labor-hours paid
Direct labor cost per hour
Total direct labor cost
April
May
Transcribed Image Text:Sthilaire Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.36 direct labor-hours. The direct labor rate is $7.60 per direct labor-hour. The production budget calls for producing 2,500 units in April and 2,400 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 960 hours in total each month even if there is not enough work to keep them busy. Required: Construct the direct labor budget for the next two months. (Round "labor-hours per unit" & "labor cost per hour" answers to 2 decimal places.) Required production in units. Direct labor-hours per unit Total direct labor-hours needed Total direct labor-hours paid Direct labor cost per hour Total direct labor cost April May
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