Question
8.Hey can someone please help me ; The company is currently analyzing direct labor hour requirements for the upcoming year. Cutting Assembly Estimated hours per
8.Hey can someone please help me ; The company is currently analyzing direct labor hour requirements for the upcoming year.
Cutting | Assembly | |
Estimated hours per unit: | ||
Royal. . . . . . . . . . . | 1.0 | 2.4 |
Regal. . . . . . . . . . . | 1.3 | 2.6 |
Imperial. . . . . . . . . | 1.9 | 2.9 |
Direct labor hour rate. . . . | $13 | $16 |
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, the
Royal,
the
Regal,
and the
Imperial
models.
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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 a whole.
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Part 1
Prepare the direct labor budget for the Cutting Department, then the Assembly Department, and finally the company as a whole.Total cutting hours required
Multiply by: Direct labor cost per hour
Budgeted direct labor cost
Rouse Industries | ||||
Direct Labor Budget | ||||
For the Upcoming Year | ||||
Royal | Regal | Imperial | Total | |
Cutting Department | ||||
Units to be produced | ||||
Multiply by: Direct labor hours per unit | ||||
Total cutting hours required |
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