Direct labor cost budget Provo Racket Company manufactures two types of tennis rackets, the Youth and Adult models. The production budget for July for the two rackets is as follows: Adult Production budget 23,300 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 0.50 hour per unit 0.60 hour per unit Youth 0.25 hour per unit Adult 0.30 hour per unit The direct labor rate for each department is as follows: Forming Department $16.00 per hour Assembly Department $12.00 per hour Youth 9,400 units Prepare the direct labor cost budget for July Line Item Description Hours required for production: Youth Adult Total Hourly rate Total direct labor cost Provo Racket Company Direct Labor Cost Budget For the Month Ending July 31 Forming Department Assembly Department
Direct labor cost budget Provo Racket Company manufactures two types of tennis rackets, the Youth and Adult models. The production budget for July for the two rackets is as follows: Adult Production budget 23,300 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 0.50 hour per unit 0.60 hour per unit Youth 0.25 hour per unit Adult 0.30 hour per unit The direct labor rate for each department is as follows: Forming Department $16.00 per hour Assembly Department $12.00 per hour Youth 9,400 units Prepare the direct labor cost budget for July Line Item Description Hours required for production: Youth Adult Total Hourly rate Total direct labor cost Provo Racket Company Direct Labor Cost Budget For the Month Ending July 31 Forming Department Assembly Department
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Direct labor cost budget
Provo Racket Company manufactures two types of tennis rackets, the Youth and Adult models. The production budget for July for the two rackets is as follows:
Youth
Adult
Production budget
9,400 units
23,300 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
0.50 hour per unit
0.60 hour per unit
0.25 hour per unit
0.30 hour per unit
The direct labor rate for each department is as follows:
Forming Department $16.00 per hour
Assembly Department $12.00 per hour
Youth
Adult
Prepare the direct labor cost budget for July
Provo Racket Company
Direct Labor Cost Budget
For the Month Ending July 31
Line Item Description
Hours required for production:
Youth
Adult
Total
Hourly rate
Total direct labor cost
Forming Department Assembly Department
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