please help me with below. A company manufactures a single product M. Budgeted production output is 200 units. Each unit requires 6 hours labour work for completion and the company anticipates 20% idle time.
Labour is paid at a rate of 7$ per hour. What is the direct labour cost budget?
my calculations were
total hours 200x 6 so 1200 hours which are 80% from total hours because we do have 20% idle time so total hours are 1500. 1500×7$ 10500 total cost
in the book the answer is 8400 or maybe I am going mad. 🙁