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26 27 b. 39 30 31 LEVI STRAUSS & CO. Direct Labor Cost Budget For the Month Ending May 31 (assumed data) Outeream Pockets Inseam 32 33 Zipper Total 34 35 36 37 38 39 40 Hours required for production: Dockers 501 Jeans Total minutos Convert minutes to hours (-60 minutes) x Direct labor hourly rate Total direct labor cost 41 42 43 Ex. 22-14 a. Total production of 501 Jeans, 53,300 REAL WORLD Ex 22-14 Production and direct labor cost budgets OBJ.4 Levi Strauss & Co. manufactures slacks and jeans under a variety of brand names, such as Dockers and 501 Jeans. Slacks and jeans are assembled by a variety of different sewing operations, Assume that the sales budget for Dockers and 501 Jeans shows estimated sales of 23,600 and 53,100 pairs, respectively, for May. The finished goods inventory is assumed as follows: Dockers 501 Jeans May 1 estimated inventory 670 1,660 May 31 desired inventory 420 1,860 Assume the following direct labor data per 10 pairs of Dockers and 501 Jeans for four dif- ferent sewing operations Direct Labor per 10 Pairs Dockers 501 Jeans Inseam 18 minutes 9 minutes Outerseam 20 14 Pockets Zipper 6 Total 56 minutes 38 minutes a. Prepare a production budget for May. Prepare the budget in two columns: Dockers and 501 Jeans b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $13 wage per hour for the inseam and outerscam sewing operations and a $15 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outersem, pockets, and zipper. 9