A manufacturing company has units to produce of 940 units for the month. Each unit requires 3.5 hours of labor to produce. The cost of direct labor is $15 per hour. The total cost of direct labor for the month will be $.
Question
A manufacturing company has units to produce of 940 units for the month. Each unit requires 3.5 hours of labor to produce. The cost of direct labor is .
Solution
To calculate the total cost of direct labor for the month, follow these steps:
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Determine the total labor hours needed to produce 940 units. Since each unit requires 3.5 hours of labor, multiply 940 units by 3.5 hours/unit.
940 units * 3.5 hours/unit = 3290 hours
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Next, calculate the total cost of labor. Since the cost of direct labor is $15 per hour, multiply the total labor hours by the cost per hour.
3290 hours * 49,350
So, the total cost of direct labor for the month will be $49,350.
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