Question

Deep Valley Foods manufactures a product that is first smoked and then packed for shipment to customers. During a normal month the product’s direct labor cost per pound is budgeted using the following information:


The budget for March calls for the production of 500,000 pounds of product. However, March’s direct labor costs for smoking are expected to be 5 percent above normal due to anticipated scheduling inefficiencies. Yet direct labor costs in the packing room are expected to be 3 percent below normal because of changes in equipment layout.
Prepare a budget for direct labor costs in March using three column headings: Total, Smoking, andPacking.


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  • CreatedApril 17, 2014
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