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Homework answers / question archive /  Company manufactures two types of tennis rackets, the Junior and Pro Striker, models

 Company manufactures two types of tennis rackets, the Junior and Pro Striker, models

Accounting

 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 8,200 units 20,600 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 0.4 hour per unit
Pro Striker 0.35 hour per unit 0.75 hour per unit

The direct labor rate for each department is as follows:

Forming Department $15 per hour
Assembly Department $10 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    
Total    
Hourly rate    
Total direct labor cost  

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