Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows:
Junior Pro Striker
Production budget ...............1,500 units...............6,200 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 ....................0.16 hour per unit...............0.24 hour per unit
Pro Striker...............0.20 hour per unit................0.30 hour per unit
The direct labor rate for each department is as follows:
Forming Department...............$18.00 per hour
Assembly Department.............$14.00 per hour
Prepare the direct labor cost budget for July 2016.