Question

Direct Labor Cost Budget MatchPoint Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows: Junior Pro Striker Production budget 7,000 units 21,200 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 0.25 hour per unit 0.3 hour per unit Assembly Department 0.5 hour per unit 0.65 hour per unit Pro Striker The direct labor rate for each department is as follows: Forming Department Assembly Department $14 per hour $9 per hour

Answer 1

	Forming	Assembly
Hours required
Junior	(7000*0.25) = 1750	(7000*0.5) = 3500
Pro striker	(21,200*0.3) = 6360	(21200*0.65) = 13,780
Total	8110	17280
Hourly Rate	14	9
Total Cost	113,540	155,520