Question
Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow: Strike Turkey Production 2,600 bags 3,450
Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow: Strike Turkey Production 2,600 bags 3,450 bags Two departments, Cutting and Sewing, produce the bowling bags.
Direct labor hours needed for each style are as follows: Cutting Sewing Strike 0.050 hour per bag 0.350 hour per bag Turkey 0.200 hour per bag 0.500 hour per bag Hourly direct labor rates are $13 for the Cutting Department and $13 for Sewing.
Determine Alleyway's budgeted direct labor cost for October. Note: Round your final answers to nearest whole dollar. Do not round your intermediate calculations.
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