Question

Donner 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 18,000 units 10,000 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 0.20 hour per unit 0.60 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 $21 per hour
Assembly Department $16 per hour

Required:
Prepare the direct labor cost budget for March. Enter all amounts as positive numbers.

Answer 1

Answer: Check attachment

Step-by-step explanation:

The direct labor cost budget for March has been attached.

Note that:

For Junior Models:

Forming Department = 18,000 units × 0.20 = 3,600

Assembly Department = 18,000 units * 0.60 = 10,800

For Pro striker Models:

Forming Department = 10,000 × 0.35 = 3,500

Assembly Department = 10,000 × 0.75 = 7,500

Check attachment for complete solution.