Magnolia Candle Co. budgeted production of 74,200 candles in 2014. Each candle requires molding. Assume that 12 minutes

Magnolia Candle Co. budgeted production of 74,200 candles in 2014. Each candle requires molding. Assume that 12 minutes are required to mold each candle. If molding labor costs $14.00 per hour, determine the direct labor cost budget for 2014.

Answer:



Hours required for assembly: 
Candles (74,200 × 12 min.)…………………………………………………  890,400  min. 
Convert minutes to hours…………………………………………………… ÷   60  min. 
Molding hours…………………………………………………………………  14,840  hrs. 
Hourly rate…………………………………………………………………….……    ×     $14.00 
Total direct labor cost……………………………………………………………  $207,760