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Direct Labor Cost Budget Ace Racket Company manufactures two types of tennis rackets, the Junior...

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Accounting

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 1,500 units 6,200 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 0.16 hour per unit 0.24 hour per unit
Pro Striker 0.20 hour per unit 0.30 hour per unit

The direct labor rate for each department is as follows:

Forming Department $18.00 per hour
Assembly Department $14.00 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
Pro Striker
Total
Hourly rate x $ x $
Total direct labor cost $ $

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