Question

Alleyway Corp. manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow: Strike Turkey Production 2,300 bags 3,100 bags Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows: Cutting Sewing Strike 0.150 hour per bag 0.250 hour per bag Turkey 0.200 hour per bag 0.350 hour per bag Hourly direct labor rates are $11 for the Cutting Department and $15 for Sewing. Required: Determine Alleyway's budgeted direct labor cost for October. (Round your final answers to nearest whole dollar. Do not round your intermediate calculations.)

Answer 1

Total Budgeted Direct Labor costs $ 35,515

Step-by-step explanation:

Computation of Direct labor Cost

Strike Turkey Total

Production Units 2,300 3,100 5,400

Cutting per bag hours 0.15 0.20

Sewing per bag hours 0.25 0.35

Total Cutting hours 345 620 965

Total Sewing hours 575 1,085 1,660

Cost per hour - Cutting $ 11 per hour

Cost per hour Sewing $ 15

Total labor costs Cutting department ($ 11 per hour 965 hours = $ 10,615

Total labor costs Sewing department ($ 15 per hour*1,660 hours = $ 24,900

Total Budgeted Direct Labor costs $ 35,515

Answer 2

ALLEYWAY Corp.

Budgeted Direct Labor Cost for October

Strike Turkey Total

Unit produced 2300bags 3100bags

Cutting $3,795 $6,820 $10,615

sewing 8,625 16,275 24,900

12,420 23,095 35,515

Total budgeted direct labour cost for October is $35,515.

workings

strike

cutting = 0.150 * 2300*$11 = $3,795

Sewing = 0.250* 2300 * $15 = $8,625

Turkey

Cutting = 0.200*3100* $11 = $6,820

Sewing = 0.350 * 3100* $15 = $16,275

Step-by-step explanation: