Direct labor cost budget
Provo Racket Company manufactures two types of tennis rackets, the Youth and Adult models. The production budget for July for the two rackets is as follows:
tableYouth,AdultProduction budget, units, units
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
tableForming Department,Assembly DepartmentYouth hour per unit, hour per unitAdult hour per unit, hour per unit
The direct labor rate for each department is as follows:
Forming Department $ per hour
Assembly Department $ per hour
Prepare the direct labor cost budget for July.
Provo Racket Company
Direct Labor Cost Budget
For the Month Ending July
Line Item Description
Hours required for production:
Youth
Adult
Total
Hourly rate
Total direct labor cost
Forming Department
Assembly Department
