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

Royal,

the

Imperial,

and the

Flash

models.

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Requirement

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.

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Part 1

Prepare the direct labor budget for the Cutting Department, then the Assembly Department, and finally the company as a whole.

Stenback Industries
Direct Labor Budget
For the Upcoming Year
	Royal	Imperial	Flash	Total
Cutting Department
Units to be produced
Multiply by: Direct labor hours per unit
Total cutting hours required
Multiply by: Direct labor cost per hour
Budgeted direct labor cost

Data table The company is currently analyzing direct labor hour requirements for the upcoming year. Cutting Assembly Estimated hours per unit: Royal 1.4 2.7 Imperial 1.9 2.4 Flash 1.8 2.6 Direct labor hour rate..... $ $ 10 $ $ 11 Data table Budgeted unit production for each of the products is as follows: Number of units to be produced Product model: Royal 540 Imperial 740 Flash 840