Alex Corporation is working on its direct labor budget for the next two months

Accounting Feb 25, 2021

Alex Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.7 direct labor-hours. The direct labor rate is $8.50 per direct labor-hour. The production budget calls for producing 4,800 units in June and 5,300 units in July. 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 3,640 hours in total each month even if there is not enough work to keep them busy.

Construct the direct labor budget for the next two months.

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