The Direct Labour Budget

The Direct Labour Budget

• At Royal, each unit of product requires 0.05 hours (3 minutes) of direct labour.
• The Company has a “no layoff” policy so all employees will be paid for 40 hours of work each week.
• Workers are paid at the rate of $10 per hour regardless of the hours worked.
• For the next three months, the direct labour workforce will be paid for a minimum of 1,500 hours per month.

Example

Over to you

Remember to take some time to reflect on what you have learnt.