A company will produce 2,640 bicycle helmets, each needing 0.6 direct labor hours of assembly at $12 per hour. What is the assembly labor cost for bicycle helmets?

1. Units to be produced come first, and here that is 2,640 bicycle helmets. 2. Assembly hours are 2,640 units times 0.6 hours per unit, which is 1,584 hours. 3. That hour count is then multiplied by the rate for assembly work, $12 per hour. 4. Assembly labor cost is 1,584 hours times $12, which is $19,008. 5. Each product needs a rate for each operation, so forming hours would be costed at the forming rate instead. 6. $1,584 is the hours rather than the cost. 7. $23,760 applies the forming rate of $15 per hour to assembly hours, which crosses the two operations. _Source: Jonick, Principles of Managerial Accounting (UNG Press, CC BY-SA 4.0), section 7.6 Sales Budget_