The direct labor work force of Edwin Inc. consists of 150 employees working full time, 8 hours, 5 days a week. Normal capacity assumes that the equivalent of 48 weeks of work can be expected from a full-time employee.
Required:
Calculate the following:
(1) The number of direct labor hours to be used in calculating the factory overhead rate based on normal capacity.
(2) The number of direct labor hours if management and workers agree on a 10-hour, 4-day workweek.