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 23,500 and 53,100 pairs, respectively, for May. The finished goods inventory is assumed as follows: Dockers 501 Jeans 670 1,660 420 1,860 May 1 estimated inventory May 31 desired inventory 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 Inseam 18 minutes 9 minutes 20 14 Outerseam Pockets 6 9 Zipper 12 6 Total 56 minutes 38 minutes | 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 V 420 1,860 Total units available 24,020 May 1 estimated inventory -1,6607 Total units to be produced 23,350 54,960 -670 53,300 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 cost budget in four columns: inseam, outerseam, pockets, and zipper. Levi Strauss & Co. Direct Labor Cost Budget For the Month Ending May 31 (assumed data) Inseam Outerseam Pockets Zipper Total Dockers 42,030 46,700 14,010 11,675 X 501 Jeans 47,970 74,620 47,970 31,980 Total minutes 90,000 121,320 61,980 43,655 X Total direct labor hours 1,500 2,022 1,033 727.58 x 15 Direct labor rate 13 XS 13 XS 15 XS Total direct labor cost 19,500 26,286 15,495 10,914 X 72,195