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 Rocket, the Royal, and the Zip models.

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. Prepare the direct labor budget for the Cutting Department, then the Assembly Department, and finally the company as a whole. Osborne Industries Direct Labor Budget For the Upcoming Year Rocket Royal Zip 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 Budgeted unit production for each of the products is as follows: Number of units to be produced Product model: Rocket 540 Royal 770 Zip 810 Print Done Data table The company is currently analyzing direct labor hour requirements for the upcoming year. Cutting Assembly Estimated hours per unit: Rocket 1.8 2.2 1.6 2.6 Royal Zip Direct labor hour rate 1.3 2.0 ...$ 10 $ 13 Print Done