M publishers budgeted production of 79,500 diaries in 2012. each diary requires assembly. assume that 12 minutes are required to assemble each diary. if assembly labor costs $14.50 per hour, determine the direct labor cost budget for 2012.
For each diary we have the following rule of three: 14.50 $ ------> 60 minutes x --------------> 12 minutes Clearing x we have: x = (12/60) * (14.50) x = 2.9 $ Then, for all the diary we have that the cost is: (2.9) * (79500) = 230550 $ Answer: the direct labor cost budget for 2012 is: 230550 $
