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Orme Industries manufactures three models of a product in a single plant with two departments: Cutting and Assembly. The company has estimated costs for
Orme 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 Royal, and the Zoom. (Click the icon to view the direct labour hour information.) (Click the icon to view the unit production information.) Requirement 1. Prepare a direct labour budget for the upcoming year that shows the budgeted direct labour costs for each department and for the company as a whole. Prepare the direct labour budget for the Cutting Department, then the Assembly Department, and finally the company as a whole. Start with the budget for the Cutting Department. Orme Industries Direct Labour Budget Cutting Department Units to be produced Direct labour hours per unit Rockets For the Upcoming Year Royals Zooms Total Total cutting hours required Direct labour cost per hour Budgeted DL cost Now work on the budget for the Assembly Department. Assembly Department Units to be produced Direct labour hours per unit Rockets Royals Zooms Total
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