Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels ollow: Strike 2,200 bags Turkey 3,450 bags Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follow Production
Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels ollow: Strike 2,200 bags Turkey 3,450 bags Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follow Production
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...
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![Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for O
follow:
Strike
2,200 bags
Turkey
3,450 bags
Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows:
Production
Cutting
Sewing
0.350 hour per bag.
Strike
Turkey
0.050 hour per bag
0.200 hour per bag
0.550 hour per bag
Hourly direct labor rates are $10 for the Cutting Department and $15 for Sewing.
Required:
Determine Alleyway's budgeted direct labor cost for October.
Note: Round your final answers to nearest whole dollar. Do not round your intermediate calculations.
Budgeted Direct Labor Cost
Cutting
Sewing](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4fb4f945-66bb-48be-96ec-4a7e89e864c1%2Fd5f2344e-46c0-43db-8a62-a9bd1e79d2a4%2Fi5azsbk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for O
follow:
Strike
2,200 bags
Turkey
3,450 bags
Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows:
Production
Cutting
Sewing
0.350 hour per bag.
Strike
Turkey
0.050 hour per bag
0.200 hour per bag
0.550 hour per bag
Hourly direct labor rates are $10 for the Cutting Department and $15 for Sewing.
Required:
Determine Alleyway's budgeted direct labor cost for October.
Note: Round your final answers to nearest whole dollar. Do not round your intermediate calculations.
Budgeted Direct Labor Cost
Cutting
Sewing
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