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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 Production budget 18,200 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 0.25 hour per unit 0.50 hour per unit 0.30 hour per unit 0.70 hour per unit The direct labor rate for each department is as follows: Pro Striker Junior Forming Department Assembly Department 9,100 units Pro Striker Prepare the direct labor cost budget for July. Hours required for production: Junior $14.00 per hour $8.00 per hour Ace Racket Company Direct Labor Cost Budget For the Month Ending July 31 Forming Department Assembly Department

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 Production budget 18,200 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 0.25 hour per unit 0.50 hour per unit 0.30 hour per unit 0.70 hour per unit The direct labor rate for each department is as follows: Pro Striker Junior Forming Department Assembly Department 9,100 units Pro Striker Prepare the direct labor cost budget for July. Hours required for production: Junior $14.00 per hour $8.00 per hour Ace Racket Company Direct Labor Cost Budget For the Month Ending July 31 Forming Department Assembly Department

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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### Ace Racket Company #### Direct Labor Cost Budget ##### For the Month Ending July 31 **Overview:** The production budget includes two types of rackets: - Junior: 9,100 units - Pro Striker: 18,200 units Both rackets are produced in two departments: Forming and Assembly. **Labor Hours Required:** - **Forming Department:** - Junior: 0.25 hour per unit - Pro Striker: 0.30 hour per unit - **Assembly Department:** - Junior: 0.50 hour per unit - Pro Striker: 0.70 hour per unit **Labor Rates Per Department:** - **Forming Department:** $14.00 per hour - **Assembly Department:** $8.00 per hour **Objective:** Prepare the direct labor cost budget for July. --- **Budget Table:** | **Category** | **Forming Department** | **Assembly Department** | |-----------------------------------|-----------------------|------------------------| | **Hours required for production:**| | | | Junior | | | | Pro Striker | | | | **Total** | | | | **Hourly rate** | x$ | x$ | | **Total direct labor cost** | $ | $ | - Fill in the required hours and calculate the total labor cost using the given rates.
Transcribed Image Text:### Ace Racket Company #### Direct Labor Cost Budget ##### For the Month Ending July 31 **Overview:** The production budget includes two types of rackets: - Junior: 9,100 units - Pro Striker: 18,200 units Both rackets are produced in two departments: Forming and Assembly. **Labor Hours Required:** - **Forming Department:** - Junior: 0.25 hour per unit - Pro Striker: 0.30 hour per unit - **Assembly Department:** - Junior: 0.50 hour per unit - Pro Striker: 0.70 hour per unit **Labor Rates Per Department:** - **Forming Department:** $14.00 per hour - **Assembly Department:** $8.00 per hour **Objective:** Prepare the direct labor cost budget for July. --- **Budget Table:** | **Category** | **Forming Department** | **Assembly Department** | |-----------------------------------|-----------------------|------------------------| | **Hours required for production:**| | | | Junior | | | | Pro Striker | | | | **Total** | | | | **Hourly rate** | x$ | x$ | | **Total direct labor cost** | $ | $ | - Fill in the required hours and calculate the total labor cost using the given rates.
**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**: 9,100 units - **Pro Striker**: 18,200 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** | 0.25 hour per unit | 0.50 hour per unit | | **Pro Striker** | 0.30 hour per unit | 0.70 hour per unit | The direct labor rate for each department is as follows: - **Forming Department**: $14.00 per hour - **Assembly Department**: $8.00 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 | | |
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**: 9,100 units - **Pro Striker**: 18,200 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** | 0.25 hour per unit | 0.50 hour per unit | | **Pro Striker** | 0.30 hour per unit | 0.70 hour per unit | The direct labor rate for each department is as follows: - **Forming Department**: $14.00 per hour - **Assembly Department**: $8.00 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 | | |
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