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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

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BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
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Direct Labor Budget

Evans Company produces asphalt roofing materials. The production budget in bundles for Evans’ most popular weight of asphalt shingle is shown for the following months:

Chapter 9, Problem 55E, Direct Labor Budget Evans Company produces asphalt roofing materials. The production budget in

Each bundle produced requires (on average) 0.40 direct labor hour. The average cost of direct labor is $20 per hour.

Required:

Prepare a direct labor budget for March, April, and May, showing the hours needed and the direct labor cost for each month and in total.

To determine

Present a direct labor budget for the months of March, April, and May as well as for the quarter in total.

Explanation

Direct Labor Budget:

Direct labor budget is an operating budget. Direct labor budget is prepared to compute expected labor cost and labor hours required for production of finished goods.

Direct labor budget for the months of March, April, and May as well as for the quarter in total:

ParticularsMarch ($) April ($)May($)Total ($)
Expected units of production4,00013,00014,40031,400
Labor hours required (0

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