Question 21.4: Landon Awards Co. budgeted production of 47,000 brass plaque...
Landon Awards Co. budgeted production of 47,000 brass plaques in 2014. Each plaque requires engraving. Assume that 12 minutes are required to engrave each plaque. If engraving labor costs $11.00 per hour, determine the direct labor cost budget for 2014.
Hours required for engraving:
Brass plaque (47,000 × 12 min.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 564,000 min.
Convert minutes to hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ÷ 60 min.
Engraving hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,400 hrs.
Hourly rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . × $11.00
Total direct labor cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \underline{\underline{\$ \ 103,400}}