Instructions Production and Direct Labor Cost Budgets Levi Strauss & Co. 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 23,600 and 53,100 pairs, respectively, for May 2016. The finished goods inventory is assumed as follows: 501 Jeans May 1 estimated inventory Dockers 670 420 1,660 May 31 desired inventory 1,860 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 18 minutes 9 minutes Outerseam Pockets Zipper Total 56 minutes 38 minutes Part A: Production Budget a. Prepare a production budget for May. Levi Strauss and Co. Production Budget May 2016 (assumed data) Dockers Expected units to be sold 501 Jeans Total units Total units to be produced Part B: Direct Labor Cost Budget b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $13 wage per hour for the inseam and outerseam sewing operations and a $15 wage per hour for the pocket and zipper sewing operations. Levi Strauss and Co. Direct Labor Cost Budget May 2016 (assumed data) Inseam Outerseam Pockets Zipper Total Dockers 501 Jeans Total minutes Total direct labor hours Direct labor rate $ Total direct labor costs