Vanguard Industries is preparing its direct labor budget for the next two months. Each unit of output requires 0.65 direct labor-hours. The direct labor rate is $11.20 per direct labor-hour. The production budget calls for producing 8,200 units in May and 7,800 units in June. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, the company is committed to paying its direct labor workforce for at least 5,600 hours per month, even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?

Vanguard Industries is preparing its direct labor budget for the next two months. Each unit of output requires 0.65 direct labor-hours. The direct labor rate is $11.20 per direct labor-hour. The production budget calls for producing 8,200 units in May and 7,800 units in June. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, the company is committed to paying its direct labor workforce for at least 5,600 hours per month, even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...

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