Question

Sheffield, Inc., is preparing its direct labor budget for 2017 from the following production budget based on a calendar...

Sheffield, Inc., is preparing its direct labor budget for 2017 from the following production budget based on a calendar year.

Quarter

Units

Quarter

Units

1 20,360 3 35,200
2 25,280 4 30,170


Each unit requires 1.80 hours of direct labor.

Prepare a direct labor budget for 2017. Wage rates are expected to be $18 for the first 2 quarters and $20 for quarters 3 and 4. (Round Direct labor time per unit answers to 2 decimal places, e.g. 52.65.)

SHEFFIELD, INC.
Direct Labor Budget

For the Quarter Ending December 31, 2017December 31, 2017For the Year Ending December 31, 2017

Quarter

1

2

3

4

Year

Total Direct Labor CostDirect Labor Time Per UnitTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursDirect Labor Cost Per HourDirect Materials PurchasesUnits to be ProducedBeginning Direct MaterialsEnding Direct MaterialsCost Per Pound

Direct Materials PurchasesCost Per PoundTotal Direct Labor CostDirect Labor Cost Per HourDirect Labor Time Per UnitBeginning Direct MaterialsEnding Direct MaterialsTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursUnits to be Produced

Units to be ProducedTotal Required Direct Labor HoursDirect Materials PurchasesDirect Labor Cost Per HourDirect Labor Time Per UnitTotal Cost of Direct Materials PurchasesBeginning Direct MaterialsCost Per PoundEnding Direct MaterialsTotal Direct Labor Cost

Units to be ProducedCost Per PoundDirect Labor Cost Per HourTotal Required Direct Labor HoursDirect Labor Time Per UnitBeginning Direct MaterialsEnding Direct MaterialsDirect Materials PurchasesTotal Cost of Direct Materials PurchasesTotal Direct Labor Cost

$

$

$

$

Direct Labor Time Per UnitDirect Labor Cost Per HourCost Per PoundUnits to be ProducedTotal Direct Labor CostBeginning Direct MaterialsTotal Required Direct Labor HoursDirect Materials PurchasesEnding Direct MaterialsTotal Cost of Direct Materials Purchases

$

$

$

$

$

0 0
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Answer #1
SHEFFIELD, INC.
Direct Labor Budget

For the Quarter Ending December 31, 2017December 31, 2017For the Year Ending December 31, 2017

Quarter

1

2

3

4

Year

Unit to be produced

20360

25280

35200

30170

Direct labor time per unit

1.8

1.8

1.8

1.8

Total required direct labor hour

36648

45504

63360

54306

Direct labor cost per hour $18

$18

$20

$20

Total direct labor cost

$659664

$819072

$1267200

$1086120

$3832056

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