Answer:
$842,400
Explanation:
The direct labor cost given is a function number of hours needed to produce a unit, the number of units to product and the cost per labor hour.
The total budgeted direct labor cost is the product of these elements. Given that a unit requires 3 hours, the total number of hours required to produce 23400 units
= 23400 * 3
= 70200 hours
If the labor cost per hour is $12, the total budgeted direct labor cost for May
= 70200 * $12
= $842,400
Answer:
$842,400
Explanation:
Cost of labor which is incurred to produce a specific product is known as direct labor cost of that product. It is charged directly to the product cost as this cost is purely incurred in the production that specific product.
As per given Data
Projected units = 23,400
Hours per unit = 3 hours
Labor cost per hour = $12 per hour
Budgeted Direct labor hour = Projected units x Hours per unit x Labor cost per hour
Budgeted Direct labor hour = 23,400 units x 3 hours x $12 per hour
Budgeted Direct labor hour = $842,400
