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Secret Prizes Inc. is planning to sell 200 buckets and produce 190 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $15.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Secret Prizes has 300 kilos of plastic in beginning inventory and wants to have 200 kilos in ending inventory. How much is the total amount of budgeted direct labor for March? $1,425 $3,000 $2,850 $1,500

Answer :

ahmedgodtrust

Answer:

Budgeted direct labour hours

= 0.5 hour x 200 buckets

= 100 hours

Budgeted amount of direct labour

= 100 hours x $15

=  $1,500

Explanation:

There is need to calculate direct labour hour, which is 0.5 hour multiplied by number of buckets budgeted. then, we will determine the budgeted amount of direct labour, which is budgeted direct labour hours multiplied by hourly rate.

marvineetesh3

The total amount of budgeted direct labor for March would be $1,500.

What is direct labor cost?

Direct labor cost is a portion of payroll that can be specifically and systematically delegated to or associated with the manufacture of a product, a particular work order, or provision of a service.

Computation of the total amount of budgeted direct labor for March:

Given that,

Cost of plastic= $10 per 500 gms,

Employee payment= $15 per hour.

Budgeted amount of direct labor are:

[tex]\text{Budgeted amount of direct labour} = \text{Budgeted direct labor hours}\times{\text{Payment Per Hour}}\\\\\text{Budgeted amount of direct labour} =[\text{(0.5 hour )}\times200 \text{Buckets}}]\times{\$15}\\\\\text{Budgeted amount of direct labour} =100 \text{hours} \times\$15\\\\\text{Budgeted amount of direct labour} =\$1,500.[/tex]

Therefore, the budgeted amount of the direct labor would be $1,500.

Learn more about labor, refer:

https://brainly.com/question/984683

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