Anderson Industries manufactures three models of a product in a single plant with two departments: Cutting and Assembly. The company has estimated costs for each of the three product models, which are the Flash, the Royal, and the Zip models. The company is currently analyzing direct labor hour requirements for the upcoming year.

Budgeted unit production for each of the products is as follows:
Number of units to be produced
Product model:
Flashes.......................................................................... 510
Royals............................................................................ 740
Zips............................................................................... 860

Requirement
Prepare a direct labor budget for the upcoming year that shows the budgeted direct labor costs for each department and for the company as awhole.

Transcribed Image Text:

Cutting Assembly Estimated hours per unit Flashes. Royals. Zips 1.8 1.7 1.3 $10 2.5 2.3 2.4 $12 Direct labor hour rate.