Question
Pouch Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.80 direct labor-hours. The direct labor
Pouch Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.80 direct labor-hours. The direct labor rate is $18.00 per direct labor-hour. The production budget calls for producing 2,100 units in June and 2,200 units in July. 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?
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Trini Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 2,000 direct labor-hours will be required in May. The variable overhead rate is $12.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $80,000 per month, which includes depreciation of $29,000. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be?
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