ippedp.cengage.com/activityservice/nun/htmiS/handlerj Production and Direct Labo
ID: 2554764 • Letter: I
Question
ippedp.cengage.com/activityservice/nun/htmiS/handlerj Production and Direct Labor Cost Budgets manufactures slacks and jeans under a variety of brand names, such as Dockers and 501 Two-Leg Company Deans8, Slacks and jeans are assembled by a variety of different sewing operations. Assume that the sales budget The finished goods inventory is assumed as follows: for Dockers and 501 Jeans shows estimated sales of 37,050 and 71,500 pairs, respectively, for May. Dockers 501 Jeans May 1 estimated inventory 1,660 2,020 May 31 desired inventory6102,520 Assume the following direct labor data per 10 pairs of Dockers and 501 Jeans for four different sewing operations: Direct Labor per 10 Pairs Dockers 501 Jeans 13 minutes 16 Inseam19 minutes Outerseam 23 Pockets Zipper Total 60 minutes 45 minutes a. Prepare a production budget for May. Prepare the budget in two columns: Dockers and 501 Jeans. For those boxes in which you must enter subtracted or negative numbers use a minus sign Two-Leg Company Production Budget For Month Ending May 31 (assumed data) Oockers s01 Jeans Expected units to be sold Total units avaliable Total units to be produced b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $10 wage per hour for the inseam and outerseam sewing operations and a $15 wage per hour for the pocket and ?? per ng operations. Prepare the direct labor cost budget in four columns: inseam, outerseam, pockets, and zipper Direct Labor Cost Budget 2ipperTotal Dockers 3/272018, s 40 PMExplanation / Answer
Production Budget Dockers 501 jeans Expected units to be sold 37,050 71,500 Add:Ending inventory 610 2,520 total units available 37,660 74,020 less:Beginning inventory 1,660 2,020 total units to be produced 36,000 72,000 Direct labor cost budget inseam outseam pockets zippers total Dockers 68400 82800 25200 39600 216000 501 jeans 93600 115200 64800 50400 324000 total minutes 162000 198000 90000 90000 540000 total direct labor hours 2700 3300 1500 1500 9000 direct labor rate 10 10 15 15 total direct labor cost 27,000 33,000 22500 22500 105,000 Dockers 501 jeans inseam 36000*19/10= 68400 inseam 72000*13/10= 93600 outseam 36000*23/10= 82800 outseam 72000*16/10= 115200 pockets 36000*7/10= 25200 pockets 72000*9/10= 64800 Zippers 36000*11/10= 39600 Zippers 72000*7/10= 50400
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