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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

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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 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 23,000 and 53,100 pairs, respectively, for May. The finished goods inventory is assumed as follows: Dockers 501 Jeans May 1 estimated inventory 670 1,660 May 31 desired Inventory 420 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 18 minutes 9 minutes Outeream Pockets Zipper 56 minutes 38 minutes for those boxes in which you must enter Precare production budget for May. Prepare the budget in two columns: Dockers and 501 Jeans wubtracted or negative numbers use a minus sign Levi Strauss & Co. Production Budget a. Prepare a production budget for May. Prepare the budget in two columns: Dockers and 501 Jeans. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Levi Strauss & Co. Production Budget For the Month Ending May 31 (assumed data) Dockers 501 Jeans Expected units to be sold 23.600 53.100 May 31 desired inventory 420 1.860 24,020 Total units available May 1 estimated inventory 670 1.6607 Total units to be produced 23.350 53.300 Remember to take to account pected units to be soldered units mending inventory and estimated units in beginning inventory when calculated for to be produced 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. Prepare the direct labor cos outerseam, pockets, and zipper, Levi Strauss & Co. Direct Labor Cost Budget For the Month Ending May 31 (assumed data) Inseam Outerweam Pockets Zipper Dockers 501 Jeans Total minutes Total direct labor hours Direct labor rate 13 Total direct labor cost

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