Pasadena candle inc. budgeted production of of 785,000 candles for the year. each candle requires molding. assume that six minutes are required to mold each candle. if molding labor costs $18 per hour, determine the direct labor cost budget for the year. wax is required to produce a candle. assume 487,125 pounds of material will be purchased during the year. if candle wax costs $1.24 per pound, determine the direct materials purchases for the year.

In order to calculate the cost, 785000, the number of candles per year is multiplied times six, for the number of minutes it takes to mold them. That number is then divided by 60 because there are 60 minutes in an hour. Then that number is multiplied by 18 because that is the cost of molding per hour. Doing this gives the labor cost for a year, $1,413,000. To calculate materials cost, multiply 487125, the cost of wax needed by 1.25, the cost per pound. The cost of materials for the year is 608,906.25.

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