Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows Junior Pro Striker Production budget 8,600 units 20,100 units Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows: Forming Department Assembly Department Junior 0.20 hour per unit 0.50 hour per unit Pro Striker 0.30 hour per unit 0.60 hour per unit The direct labor rate for each department is as follows: Forming Department $19.00 per hour
Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows Junior Pro Striker Production budget 8,600 units 20,100 units Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows: Forming Department Assembly Department Junior 0.20 hour per unit 0.50 hour per unit Pro Striker 0.30 hour per unit 0.60 hour per unit The direct labor rate for each department is as follows: Forming Department $19.00 per hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Direct Labor Cost Budget
Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows:
Junior
Pro Striker
Production budget
8,600 units
20,100 units
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
Forming Department
Assembly Department
Junior
0.20 hour per unit
0.50 hour per unit
Pro Striker
0.30 hour per unit
0.60 hour per unit
The direct labor rate for each department is as follows:
Forming Department
$19.00 per hour
Assembly Department
$9.00 per hour
Prepare the direct labor cost budget for July.
Ace Racket Company
Direct Labor Cost Budget
For the Month Ending July 31
Forming Department
Assembly Department
Hours required for production:
Junior
Pro Striker
Total
Hourly rate
X$
X$
Total direct labor cost
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