Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Erics Manufacturing Limited has provided you with the following information: Units to be produced: July 10,000; August 15,000; September 8,000 Each unit requires .5 direct

Erics Manufacturing Limited has provided you with the following information:

  1. Units to be produced: July 10,000; August 15,000; September 8,000
  2. Each unit requires .5 direct labour hours and the direct labour rate is $20/hour.
  3. The company has a no lay off policy so all employees are paid for 40 hours per week
  4. In exchange for the no layoff policy, workers agree to a wage rate of $20 per hour regardless of the hours worked (no overtime pay).
  5. For the next three months, the direct labour workforce will be paid for a minimum of 5,000 hours per month

Required: Prepare the direct labour budget for July, August & September 2021 for Erics Manufacturing Limited.

The following is a partial template for the direct labour budget:

July

August

September

Quarter

Units to be produced

Direct labour per unit

Total direct labour hours needed

Direct labour cost per hour

Total direct labour cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Theory And Practice

Authors: Jerry R. Strawser, Robert H. Strawser, Roger H. Hermanson

9th Edition

0873939336, 9780873939331

More Books

Students also viewed these Accounting questions

Question

Review The New Employee, the case study for Chapter

Answered: 1 week ago