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 9,100 units Production budget 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: Forming Department Assembly Department 0.4 hour per unit 0.6 hour per unit Junior 0.2 hour per unit Pro Striker 0.3 hour per unit The direct labor rate for each department is as follows: Forming Department Assembly Department $18 per hour $12 per hour Prepare the direct labor cost budget for July.
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 9,100 units Production budget 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: Forming Department Assembly Department 0.4 hour per unit 0.6 hour per unit Junior 0.2 hour per unit Pro Striker 0.3 hour per unit The direct labor rate for each department is as follows: Forming Department Assembly Department $18 per hour $12 per hour Prepare the direct labor cost budget for July.
Chapter1: Financial Statements And Business Decisions
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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
9,100 units
Production budget
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:
Forming Department
Assembly Department
0.4 hour per unit
0.6 hour per unit
Junior
0.2 hour per unit
Pro Striker
0.3 hour per unit
The direct labor rate for each department is as follows:
Forming Department
Assembly Department
$18 per hour
$12 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
Hours required for production:
Junior
Pro Striker
Total
Hourly rate
Total direct labor cost
Assembly Department
00000
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