Tangshang Industries production budget from the 2nd quarter of 2018, projected the following amounts of units to be produced:
April 1,000 units
May 1,200 units
June 1,250 units
Each unit requires 2 parts of component A and 3 parts of component B. Component A cost is $1.25 per unit and component B cost is $.80 per unit.
Each unit requires the following labor:
2 hours in the processing department
1 hour in the assembly department
Processing department labor rate is $4/hour
Assembly department labor rate is $6/hour
Using the information from the production budget of Tangshang Industries
A. Calculate Total Direct Labor Cost in the processing department for the quarter April – June 2018.
B. Calculate Total Direct Labor Cost for June 2018.
C. Calculate Total Direct Labor Cost for the quarter April – June 2018.