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Chapter 07 Homework (Application) Direct Labor Cost Budget Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production
Chapter 07 Homework (Application) Direct Labor Cost Budget Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows: Junior Pro Striker Production budget 7,800 units 23,400 units Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows: Forming Department Assembly Department Junior 0.2 hour per unit 0.5 hour per unit Pro Striker 0.35 hour per unit 0.7 hour per unit The direct labor rate for each department is as follows: $14 per hour Assembly Department Forming Department Prepare the direct labor cost budget for July. Ace Racket Company Direct Labor Cost Budget For the Month Ending July 31 Forming Department Assembly Department Hours required for production Pro Striker Hourly rate Total direct labor cost
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