A company manufactures a single product, M. Budgeted production output of product
M、during August is 200 units. Each unit of product
M、requires 6 labour hours for completion and PR Co anticipates 20 per cent idle time. Labour is paid at a rate of $7 per hour. What is the direct labour cost budget for August?
A、$6,720
B、$8,400
C、$10,080
D、$10,500
M、during August is 200 units. Each unit of product
M、requires 6 labour hours for completion and PR Co anticipates 20 per cent idle time. Labour is paid at a rate of $7 per hour. What is the direct labour cost budget for August?
A、$6,720
B、$8,400
C、$10,080
D、$10,500
【参考答案及解析】
Hours Active hours required for production = 200 x 6 hours = 1,200 Allowance for idle time (20% of total time = 25% of active time) 300 Total hours to be paid for 1,500 x $7 per hour Direct labour cost budget $10,500
Hours Active hours required for production = 200 x 6 hours = 1,200 Allowance for idle time (20% of total time = 25% of active time) 300 Total hours to be paid for 1,500 x $7 per hour Direct labour cost budget $10,500