Donner Racket Company manufactures two types of tennis rackets, the Junior and P
ID: 2582432 • Letter: D
Question
Donner Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The A budget of estimated unit production.production budget for March for the two rackets is as follows:
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
The direct labor rate for each department is as follows:
Prepare the direct labor cost budget for March. Enter all amounts as positive numbers.
For the Month Ending March 31
Junior Pro Striker Production budget 6,200 units 22,200 unitsExplanation / Answer
DONNER RACKET COMPANY
Direct Labor Cost Budget
For the Month Ending March 31
Forming Department
Assembly Department
Hours Required for Production:
Junior
1240 Hours
3100 Hours
Pro Striker
6660 Hours
15540 Hours
Total
7900 Hours
18640 Hours
Hourly Rate
$18.00 Per Hour
$13.00 Per Hour
Total Direct Labor Cost
$142200.00
$242320.00
WORKING NOTES:
Hours Required for Production:
DONNER RACKET COMPANY
Direct Labor Cost Budget
For the Month Ending March 31
Forming Department
Assembly Department
Hours Required for Production:
Junior
1240 Hours
3100 Hours
Pro Striker
6660 Hours
15540 Hours
Total
7900 Hours
18640 Hours
Hourly Rate
$18.00 Per Hour
$13.00 Per Hour
Total Direct Labor Cost
$142200.00
$242320.00
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