Deep Valley Foods manufactures a product that is first smoked and then packed for shipment to customers. During a normal month the product's direct labor cost per pound is budgeted using the following information:

The budget for March calls for the production of 400,000 pounds of product. However, March's direct labor costs for smoking are expected to be 6 percent above normal due to anticipated scheduling inefficiencies. Yet direct labor costs in the packing room are expected to be 2 percent below normal because of changes in equipment layout.

Prepare a budget for direct labor costs in March using three column headings: Total, Smoking, and Packing.

Chapter 23 1. value: 10.00 points Deep Valley Foods manufactures a product that is first smoked and then packed for shipment to cnustomens. During a normal month the products direct labor cost per pound is budgeted using the following information Direct Budgeted Direct Labor Hours (per pound) 0.05 0.02 Labor Cost (per hour) Process: Smoking Packing $ 16 The budget for March calls for the production of 400,000 pounds of product. However, March's direct labor costs for smoking are expected to be 6 percent above normal due to anticipated scheduling inefficiencies. Yet direct labor costs in the packing room are expected to be 2 percent below normal because of changes in equipment layout Prepare a budget for direct labor costs in March using three column headings: Total, Smoking, and Packing DEEP VALLEY FOODS Budget for Direct Labor Costs For the Month Ended March 31st Total Smoking Packing Smoking Packing Totals 70,560 70,560 01$ 0 $