Direct Labor Cost Budget Ace Racket Company manufactures two types of tennis rac

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 6,500 units 20,300 units Production budget Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows: Assembly Department 0.4 hour per unit 0.65 hour per unit Forming Department Junior Pro Striker The direct labor rate for each department is as follows: Forming Department Assembly Department 0.25 hour per unit 0.35 hour per unit $18 per hour $12 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 Assembly Department Hours required for production: unior Pro Striker Previous Next Email Instructor Submit Test for Grading

Explanation / Answer

Direct labor cost budget:

1,625 hours

(6500 units ×.25 hour per unit)

2,600 hours

(6500 units× .40 hour per unit)

7,105 hours

(20300 units × .35 hour pee unit)

13,195 hours

(20,300 unit × .65 hour per unit)

Forming Assembly Hours required for production: Junior

1,625 hours

(6500 units ×.25 hour per unit)

2,600 hours

(6500 units× .40 hour per unit)

Pro striker

7,105 hours

(20300 units × .35 hour pee unit)

13,195 hours

(20,300 unit × .65 hour per unit)

Total 8,730 hours 15,795 hours Hourly rate ×$18 per hour ×$12 per hour Total direct labour cost $157,140 $189,540

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