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Direct Labor Cost Budget

Hammer Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for May for the two rackets is as follows:

	Junior	Pro Striker
Production budget	9,500 units	21,100 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	0.5 hour per unit
Pro Striker	0.3 hour per unit	0.75 hour per unit

The direct labor rate for each department is as follows:

Forming Department	$18 per hour
Assembly Department	$12 per hour

Prepare the direct labor cost budget for May 2016.

Hammer Racket Company
Direct Labor Cost Budget
For the Month Ending May 31, 2016
	Forming Department	Assembly Department
Hours required for production:
Junior
Pro Striker
Total
Hourly rate	x$	x$
Total direct labor cost	$	$

Direct Labor Cost Budget Hammer Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for May for the two rackets is as follows Junior Pro Striker Droduction budget 9,500 units 21,100 units Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows: FormingAssembly 0.25 hour per unit unior Pro Striker The direct labor rate for each department is as follows: Forming 0.5 hour per unit 0.3 hour per 0.75 hour per unit unit $18 per Assembly $12 per hour Prepare the direct labor cost budget for May 2016 Hammer Radket Company Direct Labor Cost Budget May 31, 2016 Forming Department Assembly Department Hours required for production: Junior Pro Striker Total Hourly rate Total direct labor cost

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