Direct Labor Cost Budget MatchPoint Racket Company manufactures two types of ten

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 2,200 units 7,000 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 0.10 hour per unit 0.20 hour per unit Pro Striker 0.15 hour per unit 0.25 hour per unit The direct labor rate for each department is as follows: Forming Department $15.00 per hour Assembly Department $14.00 per hour Prepare the direct labor cost budget for March. MatchPoint Racket Company Direct Labor Cost Budget For the Month Ending March 31 Forming Department Assembly Department Hours required for production: Junior Pro Striker Total hours required Hourly rate x $ x $ Total direct labor cost $ $

Explanation / Answer

Prepare direct labour cost budget :

Forming departmen Assembly department Junior Pro striker Junior Pro striker Production units 2200 7000 2200 7000 Labour hour per unit 0.10 0.15 0.20 0.25 Production labour hour 220 1050 440 1750 Rate per hour 15 15 14 14 Direct labour cost 3300 15750 6160 24500

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