Question

James Blossom, Crane & Blossom Fabricators' production manager, has just completed the company's production budget for the first quarter. Company policy requires an ending finished goods inventory each month that will meet 20% of the following month’s sales volume.

		January		February			March			Quarter
Budgeted Production		23,400		28,800			32,200			84,400

Each brick requires 12 minutes to produce, and James expects to pay workers $15 per direct labor hour in the coming year.

Prepare Crane & Blossom'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, e.g. 5,275. Convert minutes to hour for calculation, e.g. 15 minutes is .25 hours.)

		January		February		March		Quarter
select an item                                                          Standard DLH per unitBudgeted DL costBudgeted productionTotal DLH requiredStandard wage rate		enter a number of units		enter a number of units		enter a number of units		enter a number of units
select an item                                                          Standard DLH per unitBudgeted DL costTotal DLH requiredStandard wage rateBudgeted production		enter a number of hours rounded to 2 decimal places		enter a number of hours rounded to 2 decimal places		enter a number of hours rounded to 2 decimal places		enter a number of hours rounded to 2 decimal places
select a summarizing line for the first part                                                          Standard wage rateBudgeted DL costStandard DLH per unitTotal DLH requiredBudgeted production		enter a total number of hours for the first part		enter a total number of hours for the first part		enter a total number of hours for the first part		enter a total number of hours for the first part
select an item                                                          Budgeted DL costBudgeted productionTotal DLH requiredStandard DLH per unitStandard wage rate		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select a closing name for this budget                                                          Total DLH requiredBudgeted DL costBudgeted productionStandard wage rateStandard DLH per unit		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount

Answer 1

Direct Labor Budget

For First Quarter

	January	February	March	Quarter
Budgeted Production (given)	23,400	28,800	32,200	84,400
Standard direct labor hours per unit (12 min. / 60 min.=1/5 hours)	1/5	1/5	1/5
Standard direct labor hours needed	4680	5760	6440	16880
Direct labor cost per hour	$15	$15	$15
Budgeted Cost of Labor	$70,200	$86,400	$96,600	$253,200

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