Asadena Candle Inc. budgeted production of 785,000 candles for January. Each candle requires molding. Assume that six minutes are required to mold each candle. If molding labor costs $18 per hour, determine the direct labor cost budget for January.

$1,413,000

Explanation:

Asadena Candle Inc

Estimated Direct Labor Cost Budget for January

Hours required for manufacturing:

Candles (in minutes) =785,000x6

=4,710,000 minutes

Convert 4,710,000 minutes to hours (60mins)

Manufacturing Hours = 4710000/60

Manufacturing Hours =78,500 hours

Hourly rate $18

Total direct labor cost= manufacturing hours x hourly rates

=78500x18

Total direct labor cost= $1,413,000

It will cost Asadena Candle Inc $1,413,000 to produce 785,000 candles.

Direct labor cost budget is 1,413,000

Explanation:

To get the direct labor cost budget for January first we have to get the direct cost per unit.

Direct cost per unit= direct labor hourly rate * the number of direct labor hours required to complete one unit.

Direct labor hourly rate= $18

The number of direct labor hours required to complete one unit= If we spend 6 minutes for each candle and 1 hour is 60 minutes. So, we use 1/10 of an hour to get 1 candle.

Direct cost per unit= $18 * 1/10=$1.8

The production for January is 785,000 candles.

Then, direct labor cost budget for January is the production multiplied by the direct cost per unit.

Direct labor cost budget=785,000*$1.8=1,413,000

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.