Company manufactures two types of tennis rackets, the Junior and Pro Striker, models. The production budget for July

Question

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

Help In Homework · Accepted Answer

Answer Requirement asked Ace Racket Company Direct Labor Cost Budget For the Month Ending July 31 Forming Department Assembly Department Hours required for production: Junior 1640 3280 Pro Striker 7210 15450 Total [A] 8850 18730 Hourly rate [B] $ 15 $ 10 Total direct labor cost [A x B] $ 132,750 $ 187,300 --Working Forming Department Assembly Department Hours required for production: Junior =8200*0.2 =8200*0.4 Pro Striker =20600*0.35 =20600*0.75

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

Expert Solution

Archived Solution

	Junior	Pro Striker
Production budget	8,200 units	20,600 units

	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

Forming Department	$15 per hour
Assembly Department	$10 per hour

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

Ace Racket Company
Direct Labor Cost Budget
For the Month Ending July 31
	Forming Department	Assembly Department
Hours required for production:
Junior	1640	3280
Pro Striker	7210	15450
Total [A]	8850	18730
Hourly rate [B]	$ 15	$ 10
Total direct labor cost [A x B]	$ 132,750	$ 187,300