Question

The production budget of Justus Company calls for 80,000 units to be produced. If it takes...

The production budget of Justus Company calls for 80,000 units to be produced. If it takes 45 minutes to make one unit and the direct labor rate is $16 per hour, what is the total budgeted direct labor cost?

*Please include what steps to take and what formulas to use??*

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Answer #1

Total budgeted direct labor cost = 80,000 units * 3/4 hours per unit * $16 per hour

= $960,000

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