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20-8QS

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Financial & Managerial Accounting
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Short Answer

Tora Co. plans to produce 1,020 units in July. Each unit requires two hours of direct labor. The direct labor rate is $20 per hour. Prepare a direct labor budget for July

The direct labor budget for the month of July will be $40,800.

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Step by Step Solution

Given the information as

Particulars

Amount

Production in July

1,020 units

Direct labor

2 hours

Direct labor rate

$20 per hour

Preparation of direct labor budget for the month of July.

Tora Co.

Direct labor budget

For the month of July

Particulars

Amount

Production

1,020 units

Multiply: Labor requirement

2 hours

Total labor hour needed

2,040

Multiply: Labor rate

$20

Budgeted direct labor cost

$40,800

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