Preparing Direct Labor Budget
Deadpin Corp. manufactures two styles of leather bowling bag, the Nerd and Supernerd. Budgeted production levels for October follow:
| Nerd | Supernerd |
Production | 2,500 bags | 3,250 bags |
Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows:
| Cutting | Sewing |
Nerd | 0.1 hour per bag | 0.3 hour per bag |
Supernerd | 0.2 hour per bag | 0.5 hour per bag |
Hourly direct labor rates are $12 for the Cutting department and $15 for Sewing.
Required:
Prepare Deadpin’s direct labor budget for October.
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