Exercise 5-16

Jordan Auto has developed the following production plan for its new auto part.

			July		August		September		October
	Budgeted production (units)		21,000		17,100		19,870		27,770

Each unit passes through two departments before completion. The company has developed the following direct labor standards:

			Machining			Assembly
	DLH per unit		2.0			0.5
	Hourly rate		$6.73			$14.00

Prepare the direct labor budget for the third quarter of the coming year. (Enter "per unit" value to 1 decimal place, e.g. 3.1 and the "wage rate" answers to 2 decimal places, e.g. 3.51. Round all other answers to 0 decimal places, e.g. 5,275.)

			July		August		September		3rd Quarter
	Machining
	Total DLH requiredStandard wage rateStandard DLH per unitBudgeted DL costBudgeted production
	Standard wage rateBudgeted DL costTotal DLH requiredStandard DLH per unitBudgeted production
	Budgeted productionStandard DLH per unitTotal DLH requiredStandard wage rateBudgeted DL cost
	Standard wage rateBudgeted DL costBudgeted productionStandard DLH per unitTotal DLH required		$		$		$		$
	Budgeted DL costBudgeted productionStandard DLH per unitTotal DLH requiredStandard wage rate		$		$		$		$
	Assembly
	Budgeted DL costTotal DLH requiredStandard DLH per unitStandard wage rateBudgeted production
	Standard DLH per unitStandard wage rateBudgeted productionBudgeted DL costTotal DLH required
	Standard wage rateTotal DLH requiredBudgeted DL costBudgeted productionStandard DLH per unit
	Standard DLH per unitTotal DLH requiredBudgeted DL costStandard wage rateBudgeted production		$		$		$		$
	Standard wage rateStandard DLH per unitTotal DLH requiredBudgeted DL costBudgeted production		$		$		$		$
	Total DL cost		$		$		$		$