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Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow: StrikeTurkeyProduction3,000 bags3,250 bags Two departments, Cutting
Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow:
StrikeTurkeyProduction3,000 bags3,250 bagsTwo departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows:
CuttingSewingStrike0.150 hour per bag0.300 hour per bagTurkey0.200 hour per bag0.400 hour per bagHourly direct labor rates are $9 for the Cutting Department and $15 for Sewing.
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Determine Alleyway's budgeted direct labor cost for October.
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