Question
Milano Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.50 direct labor-hours. The direct labor
Milano Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.50 direct labor-hours. The direct labor rate is $9.80 per direct labor-hour. The production budget calls for producing 6,400 units in October and 6,300 units in November. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?
Oct units: 6400 6400*.5=3200 hours *9.8=31,360
Nov units: 6300 6300*.5=3150 hours *9.8=30,870
adding direct labor for oct and now = $62,230
Please let me know if my process and calculations are correct.
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