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	8,700 units	23,300 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	$19.00 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	fill in the blank 1	fill in the blank 2
Pro Striker	fill in the blank 3	fill in the blank 4
Total	fill in the blank 5	fill in the blank 6
Hourly rate	x$fill in the blank 7	x$fill in the blank 8
Total direct labor cost	$fill in the blank 9	$fill in the blank 10

Sweet Tooth Candy Company budgeted the following costs for anticipated production for August:

Advertising expenses	$248,210
Manufacturing supplies	13,600
Power and light	40,570
Sales commissions	277,510
Factory insurance	23,630
Production supervisor wages	119,330
Production control wages	31,030
Executive officer salaries	252,980
Materials management wages	34,130
Factory depreciation	19,330

Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.

Sweet Tooth Candy Company Factory Overhead Cost Budget For the Month Ending August 31

Variable factory overhead costs:
Advertising expensesFactory depreciationFactory insuranceManufacturing suppliesSales commissionsManufacturing supplies	$Manufacturing supplies
Advertising expensesExecutive officer salariesFactory depreciationPower and lightSales commissionsPower and light	Power and light
Advertising expensesExecutive officer salariesFactory depreciationFactory insuranceProduction supervisor wagesProduction supervisor wages	Production supervisor wages
Advertising expensesFactory depreciationFactory insuranceProduction control wagesSales commissionsProduction control wages	Production control wages
Advertising expensesExecutive officer salariesFactory depreciationMaterials management wagesSales commissionsMaterials management wages	Materials management wages
Total variable factory overhead costs		$fill in the blank 11
Fixed factory overhead costs:
Advertising expensesFactory insuranceManufacturing suppliesProduction supervisor wagesSales commissionsFactory insurance	$Factory insurance
Advertising expensesExecutive officer salariesFactory depreciationPower and lightProduction supervisor wagesFactory depreciation	Factory depreciation
Total fixed factory overhead costs		fill in the blank 16
Total factory overhead costs		$fill in the blank 17