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The cost accountant of Cornwells Co., wants to prepare a direct labour budget for the next year. Product sales are expected to be 30,000 units.
The cost accountant of Cornwells Co., wants to prepare a direct labour budget for the next year. Product sales are expected to be 30,000 units. Target ending inventory of finished goods is 8.000 units, and beginning inventory is 2.000 units. Each unit of the final product requires 2.5 hours of direct labour. DL cost is $10 per hour. For this purpose, the cost accountant has the following data. Company works 24 hours (3 shifts -vardiya) a day, 5 days a week; and 50 weeks a year. Required: If there are 10 workers in each shift, how many hours of extra work (fazla mesai) should be done in each shift per worker per day
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