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In October you forecast sales to be 26,000 units and production to be 25,000 units. Each unit requires 5.5 hours of direct labor hours. Your
In October you forecast sales to be 26,000 units and production to be 25,000 units. Each unit requires 5.5 hours of direct labor hours. Your company pays its employees $20/hour, you base overhead on machine hours and each unit requires 1.5 hours of machine time at a cost of $4/hour of which $0.25 is depreciation. What amount will you pay your employees fordirect labor costfor the month ofOctober?
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