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 400,000 pounds of product. However, March's direct labor costs for smoking are expected to be 6 percent above normal due to anticipated scheduling inefficiencies. Yet direct labor costs in the packing room are expected to be 2 percent below normal because of changes in equipment layout.
Prepare a budget for direct labor costs in March using three column headings: Total, Smoking, and Packing.

Transcribed Image Text:

Direct Budgeted Direct Labor Hours Labor Cost (per pound (per hour) Process 0.05 $16 Packing . . 49