Question

Direct Labor Cost Budget Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows: Junior Pro Striker Production budget 9,600 units 19,100 units Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows: Forming Department Assembly Department Junior 0.25 hour per unit 0.50 hour per unit Pro Striker 0.35 hour per unit 0.75 hour per unit The direct labor rate for each department is as follows: Forming Department Assembly Department $15.00 per hour $11.00 per hour Prepare the direct labor cost budget for July Ace Racket Company Direct Labor Cost Budget For the Month Ending July 31 Forming Department Hours regned for production Junior Assembly Department Pro Striker To Hourly rate Total direct Labor cost

Answer 1

Direct Labor Cost Budget Forming Dept Assembly Dept Hours required for production: Junior 2400 4800 Pro Striker 6685 14325 Total 9085 19125 Multiply Hourly Rate 15.00 $ 11.00 Total direct labor cost 136,275 $ 210,375 Working of Hours required for Production Forming Dept Junior 9600 units x 0.25 hr Pro Striker 19100 units x 0.35 hr | Assembly Dept 9600 units x 0.5 hr 19100 units x 0.75 hr