Product unit are produced at the rate of 3 units per useful direct labour hour. Direct...
Product unit are produced at the rate of 3 units per useful direct labour hour. Direct labour idle time is 10% of hour paid for. Sales of 500 units are planned and finished goods stock is budget to rise by 40 units. Which of the following is direct labour budget (hours)
Group of answer choices
162
200 hours
2000
1620
Homework Answers
Answer : 200 hours
Calculated as
Sale of units = 500
Ending units = 40
Production required = 500+40 = 540
Hours required = 540/3 = 180 hours
So total hours required = 180 * 100/90 = 200 hours
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