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Two-Leg Company manufactures slacks and jeans under a variety of brand names, such as Kickers and 101 Denims

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Two-Leg Company manufactures slacks and jeans under a variety of brand names, such as Kickers and 101 Denims. Slacks
and jeans are assembled by a variety of different sewing operations. Assume that the sales budget for Kickers and 101 Denims
shows estimated sales of 27,780 and 56,600 pairs, respectively, for May. The finished goods inventory is assumed as follows:
Kickers 101 Denims
May 1 estimated inventory 1,240 1,600
May 31 desired inventory 460 2,000
Assume the following direct labor data per 10 pairs of Kickers and 101 Denims for four different sewing operations:
Direct Labor per 10 Pairs
Kickers 101 Denims
Inseam 20 minutes 14 minutes
) Outerseam 24 17
Pockets 8 10
Zipper 11 7
Total 63 minutes 48 minutes
a. Prepare a production budget for May.
Two-Leg Company
Production Budget
May (assumed data)
Kickers 101 Denims
Expected units to be sold [| [|
Ye Fo} LJ
Total units [| [|
Ye Fo} LJ
Total units to be produced [| [|
b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $10 wage per hour for the inseam and
outerseam sewing operations and a $15 wage per hour for the pocket and zipper sewing operations.
Two-Leg Company
Direct Labor Cost Budget
May (assumed data)
Inseam Outerseam Pockets Zipper Total
Hours required for production:
101 Denims [| [| [| [|
Total minutes [| [| [| [|
Convert minutes to hours [| [| [| [|
Hourly rate x {| x {| x {| x {|
Total direct labor cost 4 | 4 | 4 | 4 | 4 |