The direct labor expense for Sippican is $351,000 Can you please help me derive how that answer was calculated? Pertinent information below:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The direct labor expense for Sippican is $351,000
Can you please help me derive how that answer
was calculated?
Pertinent information below:
1 The full compensation, including fringe benefits, for direct and indirect employees (other than engineers) was $3,900 per
month. Employees worked an average of 20 days per month (holidays and vacations accounted for the remaining 2-3 business
days per month).
Valves
Pumps
Flow Controllers
Total
Production (units)
Direct labor per unit 0.38 DL hours 0.50 DL hours
7,500
12,500
4,000
24,000
0.40 DL hours
Transcribed Image Text:The direct labor expense for Sippican is $351,000 Can you please help me derive how that answer was calculated? Pertinent information below: 1 The full compensation, including fringe benefits, for direct and indirect employees (other than engineers) was $3,900 per month. Employees worked an average of 20 days per month (holidays and vacations accounted for the remaining 2-3 business days per month). Valves Pumps Flow Controllers Total Production (units) Direct labor per unit 0.38 DL hours 0.50 DL hours 7,500 12,500 4,000 24,000 0.40 DL hours
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