Direct Labor Cost Budget

Hammer Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for May for the two rackets is as follows:

	Junior	Pro Striker
Production budget	9,700 units	23,300 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:

Forming Department	$15 per hour
Assembly Department	$9 per hour

Direct Labor Cost Budget Hammer Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for May for the two rackets is as follows Junior Pro Striker Production budget 9,700 units 23,300 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 0.2 hour per unit 0.35 hour per unit Assembly Department 0.5 hour per unit Junior Pro Striker The direct labor rate for each department is as follows Forming Department Assembly Department Prepare the direct labor cost budget for May 2016 0.7 hour per unit $15 per hour $9 per hour Hammer Racket Company Direct Labor Cost Budget For the Month Ending May 31, 2016 Forming Department Assembly Department Hours required for production: Junior Pro Striker Total Hourly rate Total direct labor cost