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For Gundy Company, units to be produced are 5,000 in quarter 1 and 7,000 in quarter 2. It takes 1.6 hours to make a finished unit, and the expected hourly wage rate is $15 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30, 2022.

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anthougo

The preparation of a direct labor budget for Gundy Company for the 6-months ending June 30, 2022, is as follows:

Gundy Company

Quarterly Direct Labor Budget

For the 6 months ending June 30, 2022:

                                           Quarter 1     Quarter 2

Production units                    5,000          7,000

Labor-hour per unit                  1.6                1.6

Total direct labor-hours       8,000          11,200

Hourly wage rate                    $15               $15

Total direct labor costs    $120,000   $168,000

What is a direct labor budget?

The direct labor budget is a budget that calculates the total labor hours required to produce the budgeted units, according to the production budget.

The total direct labor hours are used to multiply the wage rate per hour to obtain the total budgeted direct labor costs.

Data and Calculations:

                                      Quarter 1     Quarter 2

Production units               5,000          7,000

Labor-hour per unit             1.6                1.6

Total direct labor-hours   8,000        11,200

Hourly wage rate              $15             $15

Total direct labor costs   $120,000   $168,000

Learn more about the direct labor budget at https://brainly.com/question/17255948

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