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 Strike 3,000 bags Turkey 3,100 bags Production Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows: Sewing Strike Turkey Cutting 0.15 hour per bag 0.15 hour per bag 0.2 hour per bag 0.55 hour per bag Hourly direct labor rates are $10 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.) Cutting Sewing Budgeted Direct Labor Cost

Explanation / Answer

Answer:-

Alleyway Corp. Budgeted labor cost for October Particulars Cutting Sewing Strike 3000 bags*0.15 hour per beg =450 3000 bags*0.2 hour per beg =600 3100 bags*0.15 hour per beg =465 3100 bags*0.55 hour per beg =1705 Total hours (a) 915 2305 Direct labor rate (b) $10 per hour $14 per hour Budgeted direct labor cost $(c=a*b) 9150 32270

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