Alleyway Corp. manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow: Strike Turkey 3,400 bags Production 2,700 bags Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows: Cutting 0.100 hour per bag 0.150 hour per bag Sewing 0.350 hour per bag 0.600 hour per bag Strike Turkey Hourly direct labor rates are $11 for the Cutting Department and $13 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Alleyway Corp. manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow:
Strike
Turkey
3,400 bags
Production
2,700 bags
Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows:
Cutting
0.100 hour per bag
0.150 hour per bag
Sewing
0.350 hour per bag
0.600 hour per bag
Strike
Turkey
Hourly direct labor rates are $11 for the Cutting Department and $13 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
Transcribed Image Text:Alleyway Corp. manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow: Strike Turkey 3,400 bags Production 2,700 bags Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows: Cutting 0.100 hour per bag 0.150 hour per bag Sewing 0.350 hour per bag 0.600 hour per bag Strike Turkey Hourly direct labor rates are $11 for the Cutting Department and $13 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
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