Direct Labor Cost Budget Rip Court Racket Company manufactures two types of tennis rackets, the...
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Accounting
Direct Labor Cost Budget
Rip Court Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows:
Junior
Pro Striker
Production budget
9,000 units
19,900 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
0.4 hour per unit
Pro Striker
0.35 hour per unit
0.75 hour per unit
The direct labor rate for each department is as follows:
Forming Department
$20 per hour
Assembly Department
$11 per hour
Prepare the direct labor cost budget for March.
FormingDepartment
AssemblyDepartment
Hours required for production:
Junior
fill in the blank 1
fill in the blank 2
Pro Striker
fill in the blank 3
fill in the blank 4
Total hours required
fill in the blank 5
fill in the blank 6
Hourly rate
x$fill in the blank 7
x$fill in the blank 8
Total direct labor cost
$fill in the blank 9
$fill in the blank 10
Answer & Explanation
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