Question

Joshua Hill, Waterway & Hill Fabricators' production manager, has just completed the company's production budget for the first quarter. January February March Quarter 21,978 37,818 33,46293,258 Each brick requires 15 minutes to produce, and Joshua expects to pay workers $20 per direct labor hour in the coming year. Prepare Waterway & Hill's direct labor budget for the first quarter. (Round per unit answers to 2 decimal places, e.g. 0.35 & all other answers to 0 decimal places, eg. 5,275. Convert minutes to hour for calculation, eg. 15 minutes is.25 hours.) January February March Quarter

Answer 1

DIRECT LABOR BUDGET FOR FIRST QUARTER:

	January	February	March	Quarter
Budgeted production	21978	37,818	33468	93258
(*) Direct labor hour required for each brick	0.25	0.25	0.25	0.25
Total number of direct labor hours required	5495	9455	8366	23316
(*) Rate per direct labor hour	$20.00	$20.00	$20.00	$20.00
Total direct labor cost	$109,900	$189,100	$167,320	$466,320

Note 1: Time required for each brick (in number of hours)
Time required for each brick (in number of hours) = 15 minutes/60 minutes = 0.25 hour

Note 2: Total number of direct labor hours required are rounded to zero decimals.