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  • 3.14 Prepare A Direct Labor Budget

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    Shawn Cassidy F. Garcia
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    The document provides information to prepare a direct labor budget for James Inc., an industrial solvent maker, for the first quarter of the year. Production units and direct labor hours needed per unit are given for January, February, and March. With an average wage of $18 per hour, the total direct labor costs are calculated to be $236,520 for January, $221,400 for February, $271,350 for March, and $729,270 for the total first quarter.

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    3.14 Prepare a Direct Labor Budget

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    The document provides information to prepare a direct labor budget for James Inc., an industrial solvent maker, for the first quarter of the year. Production units and direct labor hours needed per unit are given for January, February, and March. With an average wage of $18 per hour, the total direct labor costs are calculated to be $236,520 for January, $221,400 for February, $271,350 for March, and $729,270 for the total first quarter.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    21 views1 page

    3.14 Prepare A Direct Labor Budget

    Uploaded by

    Shawn Cassidy F. Garcia
    The document provides information to prepare a direct labor budget for James Inc., an industrial solvent maker, for the first quarter of the year. Production units and direct labor hours needed per unit are given for January, February, and March. With an average wage of $18 per hour, the total direct labor costs are calculated to be $236,520 for January, $221,400 for February, $271,350 for March, and $729,270 for the total first quarter.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    3.

    14 Prepare a Direct Labor Budget

    James Inc. makes industrial solvent. Planned production in units for the first 3 months of the coming
    year is:

    January 43,800

    February 41,000

    March 50,250

    Each drum of industrial solvent takes 0.3 direct labor hour. The average wage is P80 per hour.

    Required:

    Using Excel, prepare a direct labor budget for the month of January, February, and March, as well as the
    total for the first quarter.

    Quarter
    1 2 3 Total
    Units to be 43,800 41,000 50,250 135,050
    produces
    Direct labor time x0.3 x0.3 x0.3 x0.3
    per units in hours
    Total Hours 13,140 12,300 15,075 40,515
    needed
    Average wage per x18 x18 x18 x18
    hour
    Total direct labor P236,520 P221,400 P271,350 P729,270
    cost

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