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Production and Direct Labor Cost Budgets

Two$-$Leg Company manufactures slacks and jeans under a variety of brand names, such as Kickers and $101$ Denims. Slacks and jeans are assembled by a variety of different sewing operations. Assume that the sales budget for Kickers and $101$ Denims shows estimated sales of $24,690$ and $53,620$ pairs, respectively, for May. The finished goods inventory is assumed as follows:

Kickers $101$ Denims

May $1$ estimated inventory $1,1001,510$

May $31$ desired inventory $4101,890$

Assume the following direct labor data per $10$ pairs of Kickers and $101$ Denims for four different sewing operations:

Direct Labor per $10$ Pairs

Kickers $101$ Denims

Inseam $16$ minutes $11$ minutes

Outerseam $1914$

Pockets $68$

Zipper $106$

Total $51$ minutes $39$ minutes

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a$.$ a$.$ Prepare a production budget for May.

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b$.$ Prepare the May direct labor cost budget for the four sewing operations, assuming a $$10$ wage per hour for the

Two$-$Leg Company

Direct Labor Cost Budget

May $($assumed data$)$Prepare a production budget for May.

b$.$ Prepare the May direct labor cost budget for the four sewing operations, assuming a $$10$ wage per hour for the inseam and outerseam sewing operations and a $$16$ wage per hour for the pocket and zipper sewing operations.

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