8.2.4

Healthy Measures Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:

	Bath Scale		Gym Scale
Northern Region unit sales	19,600		34,200
Southern Region unit sales	21,200		22,300
Total	40,800		56,500

The finished goods inventory estimated for March 1, for the Bath and Gym scale models is 1,200 and 2,200 units, respectively. The desired finished goods inventory for March 31 for the Bath and Gym scale models is 900 and 2,400 units, respectively.

Prepare a production budget for the Bath and Gym scales for the month ended March 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Healthy Measures Inc.
Production Budget
For the Month Ending March 31
	Units Bath Scale	Units Gym Scale
Expected units to be sold	____	____
Desired inventory, March 31	____	____
Total units available	____	____
Estimated inventory, March 1	____	____
Total units to be produced	_____	____

Then, 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	9,600 units	23,200 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	0.20 hour per unit	0.50 hour per unit
Pro Striker	0.35 hour per unit	0.65 hour per unit

The direct labor rate for each department is as follows:

Forming Department	$15.00 per hour
Assembly Department	$9.00 per hour

Prepare the direct labor cost budget for July.

Ace Racket Company
Direct Labor Cost Budget
For the Month Ending July 31
	Forming Department	Assembly Department
Hours required for production:
Junior	_____	_____
Pro Striker	____	_____
Total	____	_____
Hourly rate	x $___	x $____
Total direct labor cost	$____	$____