Alleyway Corp. manufactures two styles of leather bowling bag, the Strike and Tu

Question

Alleyway Corp. manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow:  

Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows:

Hourly direct labor rates are $13 for the Cutting Department and $14 for Sewing.

Required:

Determine Alleyway's budgeted direct labor cost for October. (Round your final answers to nearest whole dollar. Do not round your intermediate calculations.)

     

References

Explanation / Answer

1. Total Hours Required:

For Cutting:

Strike : 2,700 bags * 0.1

= 270 Hours

Turkey = 3,150 bags * 0.2

= 630 Hours

Total Hours = 900 Hours

For Sewing:

Strike : 2,700 bags * 0.3

= 810 Hours

Turkey = 3,150 bags * 0.5

= 1,575 Hours

Total Hours = 2,385 Hours

2. Budgeted Cost:

= 900 Hours * 13 + 2,385 * 14

= $ 45,090

Hence the correct answer is $ 45,090

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