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In producing its direct labor budget for June and July, Aquatic Supplies, Inc. determined that each unit produced will require 0.61 direct labor- hours.
In producing its direct labor budget for June and July, Aquatic Supplies, Inc. determined that each unit produced will require 0.61 direct labor- hours. Aquatic's direct labor rate is $9.00 per direct labor-hour. The company has budgeted that 7,000 units will be produced in June and 7,400 units will be produced in July. Assuming that Aquatic Supplies has the ability to adjust their total direct labor-hours to the number needed each month, the budgeted total combined direct labor costs for June and July would be:
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