Joaquin Company produces asphalt roofing materials. The production budget in bundles for Joaquin’s most popular weight of asphalt shingle is shown for the following months:
Units
March ...... 2,000
April ...... 12,000
May ...... 13,000
June ...... 17,000
Each bundle produced requires (on average) 0.30 direct labor hours. The average cost of direct labor is $ 20 per hour.
Required:
Prepare a direct labor budget for March, April, and May, showing the hours needed and the direct labor cost for each month and in total.