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Production and Direct Labor Cost Budgets Levi Strauss & Co. manufactures slacks and jeans under a variety of brand names, such as Dockers and 501
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 60,000 and 125,000 pairs, respectively, for May. The finished goods inventory is assumed as follows: May 1 estimated inventory Dockers 501 Jeans 6,000 15,000 8,500 10,000 May 31 desired inventory Assume the following direct labor data per 5 pairs of Dockers and 501 Jeans for four different sewing operations: Direct Labor per 5 Pairs Dockers 501 Jeans Inseam 15 minutes. 10 minutes Outerseam 18 15 Pockets 6 4 Zipper 3 2 Total 42 minutes 31 minutes a. Prepare a production budget for May. a. Prepare a production budget for May. LEVI STRAUSS & CO. Production Budget May Expected units to be sold (Assumed Data) Dockers (Units) 501 Jeans (Units) Total units Total units to be produced b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $15 wage per hour for the inseam and outerseam sewing operations and a $17 wage per hour for the pocket and zipper sewing operations. Round your answers to one decimal place, if necessary. LEVI STRAUSS & CO. Direct Labor Cost Budget May (Assumed Data) Inseam (minutes) Outerseam (minutes) Pockets (minutes) Zipper (minutes)) Total b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $15 wage per hour for the inseam and outerseam sewing operations and a $17 wage per hour for the pocket and zipper sewing operations. Round your answers to one decimal place, if necessary. Dockers 501 Jeans Total minutes Total direct labor hours Direct labor rate Total direct labor cost LEVI STRAUSS & CO. Direct Labor Cost Budget May (Assumed Data) Inseam (minutes) Outerseam (minutes) Pockets (minutes) Zipper (minutes) Total
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