Business, 05.05.2020 18:39 odinmorton

Sunland, Inc., is preparing its direct labor budget for 2020 from the following production budget based on a calendar year. Quarter Units Quarter Units 1 20,200 3 35,240 2 25,280 4 30,120 Each unit requires 1.80 hours of direct labor. Prepare a direct labor budget for 2020. Wage rates are expected to be $18 for the first 2 quarters and $20 for quarters 3 and 4. (Round Direct labor time per unit answers to 2 decimal places, e. g. 52.50.) SUNLAND, INC. Direct Labor Budget Quarter 1 2 3 4 Year $ $ $ $ $ $ $ $ $

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Answer from: Horse0809

Direct Labor Budget for 1st quarter $ 654480 for 2nd quarter $ 819072

Direct Labor Budget for 3rd quarter $ 1268640 for 4th quarter $ 1084320

Direct Labor Budget for 1st quarter 36360 hours for 2nd quarter 45504 hours

Direct Labor Budget for 3rd quarter 63432 hours for 4th quarter 54216 hours

Explanation:

We multiply the production units with the direct labor hours per unit to get the total hours which are again multiplied with the wage rate to get the total direct labor wages.

SUNLAND, INC.

Direct Labor Budget

Quarter Quarter

1 2

Units Units

Production Budget 20,200 25,280

Direct Labor per unit 1.8 1.8

Total Hours 36360 45504

Wage Rates $ 18 $ 18

Direct Labor Budget $ 654480 $ 819072

SUNLAND, INC.

Direct Labor Budget

Quarter Quarter

3 4

Units Units

Production Budget 35,240 30,120

Direct Labor per unit 1.8 1.8

Total Hours 63432 54216

Wage Rates $ 20 $ 20

Direct Labor Budget $ 1268640 $ 1084320

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Answer from: Quest

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