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:

Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:

The direct labor rate for each department is as follows:

Prepare the direct labor cost budget for March.

$

Junior Pro Striker Production budget 9,600 units 23,200 units

Explanation / Answer

Solution:

MatchPoint Racket Company Direct Labor Cost Budget For the Month Ending March 31 Particulars Forming Department Assembly Department Hours required for production: Junior 2400 3840 Pro Striker 4640 15080 Total hours required 7040 18920 Hourly rate $17.00 $11.00 Total direct labor cost $119,680.00 $208,120.00

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