Prepare the direct labor cost budget for July.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 12E: Direct labor cost budget Ace Racket Company manufactures two types of tennis rackets, the Junior and...
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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 8,900 units 21,000 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 0.40 hour per unit
Pro Striker 0.35 hour per unit 0.70 hour per unit

The direct labor rate for each department is as follows:

Forming Department $18.00 per hour
Assembly Department $11.00 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 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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