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Cleary Industries manufactures three models of a product in a single plant with two departments: Cutting and Assembly. The company has estimated costs for each
Cleary Industries manufactures three models of a product in a single plant with two departments: Cutting and Assembly. The company has estimated costs for each of the three product models, the Rocket, the Zoom, and the Zip models. (Click the icon to view the direct labor hour information.) (Click the icon to view the unit production information.) Requirement Data table Prepare a direct labor budget for the upcoming year that shows the budgeted direct labor costs for each department and for the company as a whole. ... Direct Labor Budget The company is currently analyzing direct labor hour requirements for the upcoming year. For the upcoming Year Rocket Zoom Zip Total Cutting Assembly Estimated hours per unit: Cutting Department Units to be produced Rocket 1.6 2.5 Zoom 1.1 2.7 Multiply by: Direct labor hours per unit Total cutting hours required Zip 1.3 2.8 Direct labor hour rate..... $ 11 $ 14 Multiply by: Direct labor cost per hour Budgeted direct labor cost X Data table Assembly Department Units to be produced Multiply by: Direct labor hours per unit Total assembly hours required Multiply by: Direct labor cost per hour Budgeted direct labor cost Budgeted unit production for each of the products is as follows: Number of units to be produced Product model: Rocket 530 Total budgeted direct labor cost Zoom 750 Zip 890
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