Answer :
Answer:
Direct labor budget:
April= $7,000
May= $7,000
Explanation:
Giving the following information:
Each unit of output requires 0.15 direct labor-hours.
The direct labor rate is $7.00 per direct labor-hour.
The production budget calls for producing 6,500 units in April and 6,200 units in May.
The company is committed to paying for at least 1,000 hours each month.
First, we need to determine the number of hours for each month:
April= 6,500*0.15 hours= 975
May= 6,200*0.15= 930 hours
Direct labor budget:
April= 1,000 hours*7= $7,000
May= 1,000 hours*7= $7,000