Osborne Industries manufactures three models of a product in a single plant with

Question

Osborne Industries manufactures three models of a product in a single plant with two departments: Cutting and Assembly. The company has estimated costs for each of the three product models, the Zoom, the Regal, and the Flash models. ?(Click the icon to view the direct labor hour information.) (Click the icon to view the unit production information.) Prepare a direct labor budget for the upcoming year that shows the budgeted direct labor costs for each department and for the company as a whole. Prepare the direct labor budget for the Cutting Department, then the Assembly Department, and finally the company as a whole. Osborne Industries Direct Labor Budget For the Upcoming Year Rega Flash Total Cutting Department Units to be produced Multiply by: Direct labor hours per unit Total cutting hours required Multiply by: Direct labor cost per hour Budgeted direct labor cost Units to be produced Multiply by: Direct labor hours per unit Total assembly hours required Multiply by: Direct labor cost per hour Budgeted direct labor cost Total budgeted direct labor cost Data Table Data Table The company is currently analyzing direct labor hour requirements for the upcoming year Budgeted unit production for each of the products is as follows: Number of units to be produced Cutting Assembly Estimated hours per unit: 1.2 1.9 2.0 2.9 2.4 Zoom Regal Flash 590 720 860 Zoom Flash Direct labor hour rate S 11 S 13 Print Done Print Done

Explanation / Answer

Zoom Regal Flash Total Cutting Department: Units to be produced 590 720 860 Multiply by: Direct labor hours per unit 1.2 1.9 1.5 Total cutting hours required 708 1368 1290 Multiply by: Direct labor cost per hour 11 11 11 Budgeted direct labor cost 7788 15048 14190 37026 Assembly Department: Units to be produced 590 720 860 Multiply by: Direct labor hours per unit 2 2.9 2.4 Total assembly hours required 1180 2088 2064 Multiply by: Direct labor cost per hour 13 13 13 Budgeted direct labor cost 15340 27144 26832 69316 Total Budgeted direct labor cost 106342

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