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 9,000 units 24,200 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 0.2 hour per unit 0.5 hour per unit Pro Striker 0.35 hour per unit 0.65 hour per unit The direct labor rate for each department is as follows: Forming Department $18 per hour Assembly Department $9 per hour Prepare the direct labor cost budget for July. Ace Racket Company Direct Labor Cost Budget For the Month Ending July 31   Forming Department Assembly Department Hours required for production:     Junior fill in the blank 1 fill in the blank 2 Pro Striker fill in the blank 3 fill in the blank 4 Total fill in the blank 5 fill in the blank 6 Hourly rate x$fill in the blank 7 x$fill in the blank 8 Total direct labor cost $fill in the blank 9 $fill in the blank 10

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 9,000 units 24,200 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 0.2 hour per unit 0.5 hour per unit
Pro Striker 0.35 hour per unit 0.65 hour per unit

The direct labor rate for each department is as follows:

Forming Department $18 per hour
Assembly Department $9 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 fill in the blank 1 fill in the blank 2
Pro Striker fill in the blank 3 fill in the blank 4
Total fill in the blank 5 fill in the blank 6
Hourly rate x$fill in the blank 7 x$fill in the blank 8
Total direct labor cost $fill in the blank 9 $fill in the blank 10
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