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Webster Corporation is preparing a master budget for the first quarter of the year. The company...

Webster Corporation is preparing a master budget for the first quarter of the year. The company budgets production of 2,900 units in January, 2,710 units in February and 3,290 units in March. Each unit requires 0.6 hours of direct labor. The direct labor rate is $12 per hour. Compute the budgeted direct labor cost for the first quarter budget.

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Answer #1

first quarter production    

January     

 2900
February 2710
march 3290
TOTAL PRODUCTION 8900 UNIT

TOTAL HOUR = TOTAL UNIT * HOUR PER UNIT

8900 * 0.6 = 5340 HOUR

TOTAL COST = 5340 * 12

=$ 64,080

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