and leaning resounce fom Cengage Leaming Istemet Exploner Direct Labor Cost Budg

Question

and leaning resounce fom Cengage Leaming Istemet Exploner Direct Labor Cost Budget Striker models. The production budget for May for the two rackets is Hammer Racket Company manufactures two types of tennis rackets, the Junior and Pro as follows Pro Striker Production budget 9,800 units 20,900 units Deth rackets are produced in two departments, Forming and Assembly. The deect labor hours required for each racket are estimated as follows: Formiing Department Assembly Department 0.4 hour per unit unior Pro Strker O0.35 hour per unt 0.7 hour per unt The deect labor rate for each department is as foows $16 per hou $9 per hour Prepare the direct labor cost budget fer May 2016

Explanation / Answer

Direct labor cost budget Hours required for production Forming department Assembly department Junior for 9800 units 2450 3920 Pro striker for 20900 units 7315 14630 Total 9765 18550 Hourly rate 16 9 Total direct labor cost 156240 166950

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