Ford Corporation is pulling together its direct labor budget for the next two months. Each unit...

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Accounting

Ford Corporation is pulling together its direct labor budget forthe next two months. Each unit of output requires 0.05 directlabor-hours. The direct labor rate is $7.80 per direct labor-hour.The production budget calls for producing 5,200 units in June and5,700 units in July.

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Prepare the direct labor budget for the next two months,assuming that the direct labor work force is fully adjusted to thetotal direct labor-hours needed each month. (Round youranswers to 2 decimal places.)

JuneJuly
Requiredproduction in units
Direct labor-hoursper unit
Total directlabor-hours needed
Direct labor costper hour
Totaldirect labor cost

Answer & Explanation Solved by verified expert
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CALCULATION OF DIRECT LABOR BUDGET FOR MONTH OF JUNE AND JULY
PARTICULARS JUNE JULY
Required production in units (A)                  5,200 Hrs               5,700 Hrs
Direct Labor hours per unit (B)                    0.50 Hrs                  0.50 Hrs
Total Direct labor hours needed ( C = A X B)                  2,600 Hrs               2,850 Hrs
Direct labor cost per hour (D) $7.80 Per DLH $7.80 Per DLH
Total Direct labor Cost ( E = C X D) $20,280 $22,230
Answer =
Total Direct labor cost of June = $20,280
Total Direct labor cost of July = $22,230

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