direct labor cost budget

quetzaltenango candle inc. budgeted production of 685,000 candles for march. each candle requires molding. assume that 6 minutes are required to mold each candle. if molding labor costs $15 per hour, determine the direct labor cost budget for march.

quetzaltenango candle inc.
direct labor cost budget
for the month ending march 31

hours required for molding:
candles: min.
convert minutes to hours \div: min.
molding hours: hrs.
hourly rate \times $:
total direct labor cost $:

Question

direct labor cost budget

quetzaltenango candle inc. budgeted production of 685,000 candles for march. each candle requires molding. assume that 6 minutes are required to mold each candle. if molding labor costs $15 per hour, determine the direct labor cost budget for march.

quetzaltenango candle inc.
direct labor cost budget
for the month ending march 31

hours required for molding:
candles:   min.
convert minutes to hours \div:   min.
molding hours:   hrs.
hourly rate \times $:
total direct labor cost $:

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "blank_filling_formatter", "explain_then_answer", "tutor", "mastery_adaptive_brevity" ], "needs_drawing": false, "concepts_used": [ "Flexible Budgeting" ], "new_concepts": [ "Direct Labor Budget" ], "current_concepts": [ "Flexible Budgeting", "Direct Labor Budget" ] } ## Calculate total minutes required for molding Using the *Flexible Budgeting* knowledge point $$ \begin{aligned} \text{Budgeted Production} &= 685,000 \text{ candles} \ \text{Time per candle} &= 6 \text{ minutes} \ \text{Total minutes} &= 685,000 \times 6 = 4,110,000 \text{ min.} \end{aligned} $$ ## Convert minutes to hours Using the *Flexible Budgeting* knowledge point $$ \begin{aligned} \text{Conversion factor} &= 60 \text{ min./hr.} \ \text{Molding hours} &= \frac{4,110,000}{60} = 68,500 \text{ hrs.} \end{aligned} $$ ## Calculate total direct labor cost Using the *Flexible Budgeting* knowledge point $$ \begin{aligned} \text{Hourly rate} &= \$15 \ \text{Total direct labor cost} &= 68,500 \times 15 = \$1,027,500 \end{aligned} $$ Quetzaltenango Candle Inc. Direct Labor Cost Budget For the Month Ending March 31 Hours required for molding: Candles 4,110,000 min. Convert minutes to hours $\div$ 60 min. Molding hours 68,500 hrs. Hourly rate $\times$ \$15 Total direct labor cost \$1,027,500 { "subject": "Business", "question_type": "Fill-in-the-blank", "knowledge_point": [ "Business", "Accounting", "Direct Labor Budget" ] }

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Question

Explanation:

Calculate total minutes required for molding

Convert minutes to hours

Calculate total direct labor cost

Answer: