The budgeted direct labor cost for july is $6,300.
In June and July, Zhang budgets production plans to produce 300 and 310 units, respectively. 1.5 hours of direct labour are needed for each unit. The hourly wage for direct work is $14. the inverse
The hourly wage is $21.
$6,300 total labour cost = (300*1.5)*14
Normally, the direct labour budget is reported either monthly or quarterly. The production budget's fundamental calculation involves taking the quantity of units to be produced and multiplying it by the average number of work hours required to complete each unit.
All labor-related costs that are directly tied to production are tracked by a direct labour budget. Learn how to create a direct labour budget in this session, as well as how it relates to other kinds of accounting documents.
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