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Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow: Strike Turkey Production 2,300 bags 3,250
Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow:
Strike | Turkey | |
---|---|---|
Production | 2,300 bags | 3,250 bags |
Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows:
Cutting | Sewing | |
---|---|---|
Strike | 0.100 hour per bag | 0.250 hour per bag |
Turkey | 0.250 hour per bag | 0.550 hour per bag |
Hourly direct labor rates are $11 for the Cutting Department and $16 for Sewing.
1.) Determine Alleyway's budgeted direct labor cost for October.
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