Purchase Solution

Calculate: Total Direct Labour Cost

Not what you're looking for?

Ask Custom Question

Question: Energy Inc. is working on its direct labor budget for the next two months. Each unit of output requires 0.77 direct labor-hours. The direct labor rate is $11.20 per direct labor-hour. The production budget calls for producing 7,100 units in October and 6,900 units in November. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?

Purchase this Solution
Solution Summary

In a very brief, about 2 step response, the solution to this basic business problem is exemplified. All calculations are included and are basic in nature. A 56 word explanation accompanies the calculation.

Solution Preview

5,480 * 2 = 10,960
10,960 * 11.20 = 122,752

Answer = $122,752

The total combined direct labor ...

Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Full Costing - Pieman Products Limited

    To find the overhead recovery rate per direct labour hour you have to divide the total amount for overheads found above by the total labour hours i.e. £51,000 / 16,000 hours = £3.1875 per direct labour hour.

  • Total Overhead Cost: Direct Labour as the Cost Driver

    Using direct labour as cost driver, total overhead chargeable to job/product A amounts to a. 90,000 b. 100,000 c. 110,000 d. 120,000 e. none of the above First calculate the predetermined overhead rate = Estimated overhead/Estimated direct

  • Downhill Pty Ltd.: Overhead Cost

    What is the total overhead cost that would be applied to snow skis and snow boards in 2009, assuming that 60,000 direct labour hours were worked on snow skis and 180,000 direct labour hours were worked on snow boards? B.

  • Calculating Material and Labor Variances

    (Actual Hours - Standard Hours) Labour Efficiency Variance = $12.5(3100-2400) 8750 Unfavourable Total Labour cost variance = (ARXAH)-(SRXSH) = (13.50X3100)-(12.50X2400) $11,850 Unfavourable OR Total Labour cost variance= = Labour

  • Managerial Accounting - Direct Materials, Labour and Manufacturing Overhead costs

    Cost of shipping each door is 12$ a) classify each of the costs as a direct material cost, direct labor cost, manufacturing overhead or period cost b) Calculate the Total manufacturing cost, assuming they product 10,000 doors A) remember that the

  • Activity-Based Costing; Budgeted Operating Margin

    Using activity-based costing, calculate the total cost for 20x5 for the following activity cost pools: material handling, inspection, machining, and assembly. (For the total costs, round to the nearest dollar.)

  • Materials and manufacturing labour variances, standard costs

    Total material variance = Price variance + Efficiency variance = $7,400 U + $30,000 F = $22,600 F Direct Manufacturing Labour In order to calculate price variance, we can compute by using the following equation: Price variance = Actual hours

  • CVP question/Product cost

    Calculate the unit cost for each product using direct labour hours as the basis for applying overhead (i.e., the Plantwide approach) 2.

  • Total actual direct labor cost

    $134,400 $117,600 $134,000 $118,000 Labor price variance: AR*AH-SR*AH= -8400 AR*AH= 6.3*20000-8400= 126000-8400=117600 Actual direct labour cost = AR*AH= $117600 This provides the steps to calculate the total actual direct labor

  • Calculation of variances

    Total Actual cost unit cost Direct material purchased: 11,400 lbs a total cost of $80,940 $7.10 =80940/11400 Direct material used: 9,260 lbs @ 7.10 /lb 65,746 Direct labor used: 4420 hours at $14.35 per hour 63,427 Variable overhead

View More Related Solutions