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D Corp. is working on its direct labor budget for the next two months. Each unit of output requires 0.86 direct labor hours. The direct labor rate is %$8.20 per direct labor hour. The production budget calls for producing 6500 units in July and 6000 units in August. The company guarantees its direct labor workers a 40 hour paid work week. With the number of workers currently employed, that means that the company is committed tp paying its direct labor work force at lease 5600 hours in total each month even if there is not enought work to keep them busy.

Required. Construct the direct labor budget for the next two months.

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Accounting Basics, Accounting

Category:- Accounting Basics
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