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
tableFor the Month Ending July Line Item Description,Forming Department,Assembly DepartmentHours required for production:,,YouthAdultTotalTourly rate,$
