7. MatchPoint Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows: Junior Pro Striker Production budget 6,600 units 19,500 units Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
7. MatchPoint Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows:
Junior | Pro Striker | |
Production budget | 6,600 units | 19,500 units |
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
![**MatchPoint Racket Company Direct Labor Cost Budget Explanation**
**Forming and Assembly Departments**
**Time per Unit:**
- **Junior Racket:**
- Forming Department: 0.25 hour per unit
- Assembly Department: 0.5 hour per unit
- **Pro Striker Racket:**
- Forming Department: 0.3 hour per unit
- Assembly Department: 0.6 hour per unit
**Direct Labor Rate:**
- Forming Department: $15 per hour
- Assembly Department: $11 per hour
**Task:**
Prepare the direct labor cost budget for March.
---
**Budget Table:**
**1. Hours Required for Production:**
- **Junior Racket:**
- Forming Department: __
- Assembly Department: __
- **Pro Striker Racket:**
- Forming Department: __
- Assembly Department: __
**2. Total Hours Required:**
- Forming Department: __
- Assembly Department: __
**3. Hourly Rate (given):**
- Forming Department: $15
- Assembly Department: $11
**4. Total Direct Labor Cost:**
- Forming Department: __
- Assembly Department: __
This budget planning involves calculating the total hours required for production based on the number of units produced and multiplying these hours by the respective hourly rate to find the total labor cost for each department. The goal is to determine the labor costs for the month ending March 31.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F55f0052a-9d0d-41a8-9339-203ce40e3605%2F575e8d64-2fdd-4311-9623-88accac31b1e%2Fu1pmj4_processed.png&w=3840&q=75)
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