### Yem Company: Direct Labor Budget**Overview:**Yem Company is planning its production for the early months of the year and aims to produce 1,830 units in January and 1,923 units in February. To achieve this, the company has budgeted five direct labor hours for each unit produced. The average cost of direct labor is $13 per hour.**Objective:**The goal is to create a direct labor budget for both months by determining the total direct labor hours required and calculating the associated budgeted direct labor cost.**Budget Details:**The budget layout is structured as follows for January and February, with designated spaces to fill in:- **Production Units:** - January: 1,830 units - February: 1,923 units - **Direct Labor Hours per Unit:** - 5 hours/unit- **Calculation of Direct Labor Hours Needed for Production:** - For January: - Total Hours = Number of Units (1,830) x Hours per Unit (5) - For February: - Total Hours = Number of Units (1,923) x Hours per Unit (5)- **Direct Labor Cost:** - Rate: $13/hour - January Total Cost = Total Hours for January x $13 - February Total Cost = Total Hours for February x $13**Budget Table:**| | January | February ||-------------------------------|---------|----------|| Direct labor hours needed | | || for production | | |This information provides a foundational framework for Yem Company to plan and allocate resources efficiently, ensuring they meet production targets while managing labor costs effectively.

The budget is prepared by the management on the basis of past experience. On the basis of the budget, It is helpful for the organization to get the variances and the gaps.

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Yem Company expects to produce 1,830 units in January and 1,923 units in February. Yem budgets five direct labor hours per unit. Direct labor costs average $13 per hour. Prepare Yem's direct labor budget for January and February. Begin by preparing the direct labor budget for January and February through the total direct labor hours needed for production line and then complete the budget by calculating the budgeted direct labor cost. Yem Company Direct Labor Budget Two Months Ended January 31 and February 28 January February Direct labor hours needed for production

Yem Company expects to produce 1,830 units in January and 1,923 units in February. Yem budgets five direct labor hours per unit. Direct labor costs average $13 per hour. Prepare Yem's direct labor budget for January and February. Begin by preparing the direct labor budget for January and February through the total direct labor hours needed for production line and then complete the budget by calculating the budgeted direct labor cost. Yem Company Direct Labor Budget Two Months Ended January 31 and February 28 January February Direct labor hours needed for production

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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