- This topic has 3 replies, 2 voices, and was last updated 9 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Budgeted production next month is 8200 units. Each unit requires 6 labour hours to make. Labour is paid $15 per hour, and idle time represents 10% of the total time paid. what is the total budgeted labour cost for next month?
Please show me the calculation for this question.
The working time needed is 6 x 8200 = 49200.
Since 10% of time paid is idle, only 90% of time paid is worked.
So the hours paid will be 49200 / 90% = 54667 hours
If you cost out at $15 per hour you get $$820,000
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.