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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 27,000 units.
The cost accountant of Cornwells Co., wants to prepare a direct labour budget for the next year. Product sales are expected to be 27,000 units. Targeted ending finished goods inventory 6,000 units; beginning inventory 1,000 units. Each unit of the final product requires 5 hours of direct labour. DL cost is $10 per hour. For this purpose, the cost accountant has the following data. Company works 16 hours (in 2 shifts) a day; 5 days a week; and 50 weeks a year. Required: how much is the direct labour budget total
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