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Osborne Industries manufactures three models of a product in a single plant with two departments: Cutting and Assembly. The company has estimated costs for each
Osborne 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 Zip, and the Imperial models. (Click the icon to view the direct labor hour information.) Requirement (Click the icon to view the unit production information.) 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. Prepare the direct labor budget for the Cutting Department, then the Assembly Department, and finally the company as a whole. 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 Osborne Industries Direct Labor Budget For the Upcoming Year Royal Zip Imperial Total Data table The company is currently analyzing direct labor hour requirements for the upcoming year. Data table Budgeted unit production for each of the products is as follows: Number of units to Cutting Assembly be produced Estimated hours per unit: Product model: Royal 1.8 2.6 Royal 510 Zip 1.6 2.5 Zip 720 Imperial 1.1 2.1 Imperial 880 Direct labor hour rate .... $ 14 $ 16 Print Done Print Done
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