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For Culver Company, units to be produced are 5,590 in quarter 1 and 6,600 in quarter 2. It takes 2.0 hours to make a finished unit, and the expected hourly wage rate is $16 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30, 2017.

Answer :

Answer:

Explanation:

The preparation of the direct labor budget is shown below:

                                           Culver Company

                            Direct labor budget for six months

                                           June 30, 2017

Particulars                                Quarter 1         Quarter 2      Six month

Production

units (A)                                       5,590              6,600

Direct labor  

Hours (B)                                      2.0                    2.0

Labor wage

rate per hour (C)                        $16                 $16

Total labor cost (A × B× C)     $178,880       $211,200          $390,080

Six month is a sum of quarter 1 and quarter 2

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