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EA7.
LO 7.2Each unit requires direct labor of 2.2 hours. The labor rate is $11.50 per hour and next year’s direct labor budget totals $834,900. How many units are included in the production budget for next year?

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pedrocarratore

Answer:

33,000

Explanation:

The number of units included in the production budget is given by dividing the budgeted value by the cost per unit.

The cost per unit is:

[tex]C = 2.2*\$11.50\\C = \$25.30[/tex]

The number of budgeted units is:

[tex]n=\frac{\$834,900}{\$25,30}\\n=33,000[/tex]

33,000 units are included in the production budget for next year

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