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 Production budget 7,000 units 18,500 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 Pro Striker The direct labor rate for each department is as follows: Forming Department Assembly Department 0.2 hour per unit 0.5 hour per unit 0.35 hour per unit 0.65 hour per unit $16 per hour $8 per hour Prepare the direct labor cost budget for July 20Y9 Ace Racket Company Direct Labor Cost Budget For the Month Ending July 31, 20Y9 Forming Department Assembly Department Hours required for production Junior Pro Striker Total Hourly rate Total direct labor cost

Explanation / Answer

Forming Assembly Hours required for production Junior (7000 units @0.2 hour per unit) 1400 (7000 units @ 0.5 hour per unit) 3500 Pro sticker (18500 units @ 0.35 hour) 6475 (18500 units@ 0.65) 12025 Total hours required of department 7875 15525 Hourly rate 16 8 Total labour cost in $ 126000 124200

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.