eBook Calculator E Print Item Production and Direct Labor Cost Budgets Two-Leg Company 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 15,430 and 29,790 pairs, respectively, for May. The finished goods inventory is assumed as follows: Dockers 501 Jeans May 1 estimated inventory 690 840 May 31 desired inventory 260 1,050 Assume the following direct labor data per 10 pairs of Dockers and 501 Jeans for four different sewing operations: Direct Labor per 10 Pairs Dockers 501 Jeans Inseam 17 minutes 11 minutes Outerseam 21 Pockets Zipper Total 54 minutes 39 minutes a. Prepare a production budget for May. Prepare the budget in two columns: Dockers and 501 Jeans. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Two-Leg Company Production Budget For Month Ending May 31 (assumed data) Dockers 501 Jeans Learning Objective 4. b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $13 wage per hour for the inseam a operations and a $15 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in fou outerseam, pockets, and zipper. Two-Leg Company Direct Labor Cost Budget For Month Ending May 31 (assumed data) Inseam Outerseam Pockets Zipper Dockers 255,000 X 315,000 90,000 X 150,000 501 Jeans 333,000 X 420,000 240,000 X 180,000 Total minutes 585,000 X 735,000 X 330,000 X 330,000 X Total direct labor hours X 12,250 X 5,500 9,750 13 5,500 15 Direct labor rate $ x * $ Total direct labor cost $126,750 X $159,250 X $ 82,500 X $ 82,500 X 451,000 Feedback Check My Work Remember to take into account hours required for production, hourly rate and hours per unit when calculating direct labor cost