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Alleyway Corp. manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow: Strike Turkey Production 2,700 bags 3,150
Alleyway Corp. manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow:
Strike | Turkey | |
Production | 2,700 bags | 3,150 bags |
Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows:
Cutting | Sewing | |
Strike | 0.1 hour per bag | 0.3 hour per bag |
Turkey | 0.2 hour per bag | 0.5 hour per bag |
Hourly direct labor rates are $13 for the Cutting Department and $14 for Sewing.
Required:
Determine Alleyway's budgeted direct labor cost for October. (Round your final answers to nearest whole dollar. Do not round your intermediate calculations.)
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