XYZ Company is working on its direct labor budget for the next quarter (January, Februaryand March). Each unit of product requires 0.4 hours (24 minutes) of direct labor. The directlabor normal rate is $6 per direct labor-hour. The company's direct labor work force consistsof permanent employees who are guaranteed to be paid for at least 1,800 hours of work eachmonth. If the number of required direct labor hours is less than this number, the workers arepaid for 1,800 hours any way. Any hours worked in excess of 1,800 hours in a month are paidat the rate of 1.5 times the normal hourly rate for direct labor. The production budget callsfor producing 5,000 units in January, 4,000 units in February, and 6,000 units in March. Whatwould be the budgeted total direct labor cost for the quarter?Select one:O a. $36,000O b. $52,800Oc. $39,600O d. None of the given answersO e. $46,200

The production defines production of 5000 units in January, 4000 units in February and 6000 units in…

XYZ Company is working on its direct labor budget for the next quarter (January, February and March). Each unit of product requires 0.4 hours (24 minutes) of direct labor. The direc labor normal rate is $6 per direct labor-hour. The company's direct labor work force consi: of permanent employees who are guaranteed to be paid for at least 1,800 hours of work e month. If the number of required direct labor hours is less than this number, the workers a paid for 1,800 hours any way. Any hours worked in excess of 1,800 hours in a month are p at the rate of 1.5 times the normal hourly rate for direct labor. The production budget calls for producing 5,000 units in January, 4,000 units in February, and 6,000 units in March. Wh would be the budgeted total direct labor cost for the quarter? Select one: O a. $36,000 O b. $52,800 Oc. $39,600 O d. None of the given answers e. $46,200

XYZ Company is working on its direct labor budget for the next quarter (January, February and March). Each unit of product requires 0.4 hours (24 minutes) of direct labor. The direc labor normal rate is $6 per direct labor-hour. The company's direct labor work force consi: of permanent employees who are guaranteed to be paid for at least 1,800 hours of work e month. If the number of required direct labor hours is less than this number, the workers a paid for 1,800 hours any way. Any hours worked in excess of 1,800 hours in a month are p at the rate of 1.5 times the normal hourly rate for direct labor. The production budget calls for producing 5,000 units in January, 4,000 units in February, and 6,000 units in March. Wh would be the budgeted total direct labor cost for the quarter? Select one: O a. $36,000 O b. $52,800 Oc. $39,600 O d. None of the given answers e. $46,200

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 38P: Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven,...

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Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next years production is estimated at 75,000 units. What is the amount to be included in next years direct labor budget?
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XYZ Company is working on its direct labor budget for the next quarter (January, February and March). Each unit of product requires 0.4 hours (24 minutes) of direct labor. The direct labor normal rate is $5 per direct labor-hour. The company's direct labor work force consists of permanent employees who are guaranteed to be paid for at least 1,800 hours of work each month. If the number of required direct labor hours is less than this number, the workers are paid for 1,800 hours any way. Any hours worked in excess of 1,800 hours in a month are paid at the rate of 1.5 times the normal hourly rate for direct labor. The production budget calls for producing 5,000 units in January, 4,000 units in February, and 6,000 units in March. What would be the budgeted total direct labor cost for the quarter? Select one: O a. $39,600 b. $33,000 O c. None of the given answers O d. $30,000 o e. $46,200
XYZ Company is working on its direct labor budget for the next quarter (January, February and March). Each unit of product requires 0.4 hours (24 minutes) of direct labor. The direct labor normal rate is $7 per direct labor-hour. The company's direct labor work force consists of permanent employees who are guaranteed to be paid for at least 1,800 hours of work each month. If the number of required direct labor hours is less than this number, the workers are paid for 1,800 hours any way. Any hours worked in excess of 1,800 hours in a month are paid at the rate of 1.5 times the normal hourly rate for direct labor. The production budget calls for producing 5,000 units in January, 4,000 units in February, and 6,000 units in March. What would be the budgeted total direct labor cost for the quarter? Select one: O a. None of the given answers O b. $52,800 O c. $46,200 O d. $59,400 O e. $42,000