The Direct Labor Budget At Royal, each unit of product requires 0.05 hours (3 minutes)...
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Accounting
The Direct Labor Budget
At Royal, each unit of product requires 0.05 hours (3 minutes) of direct labor.
The Company has a no layoff policy so all employees will be paid for 40 hours of work each week.
For purposes of our illustration assume that Royal has a no layoff policy, workers are paid at the rate of $10 per hour regardless of the hours worked.
For the next three months, the direct labor workforce will be paid for a minimum of 1,500 hours per month.
prepare the direct labor budget.
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Units of production |
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direct labor per unit |
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labor hours required |
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Guaranteed labor hours |
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Labor hours paid |
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Hourly wage rate |
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Total direct labor cost |
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