Production and Direct Labor Cost Budgets

Two-Leg Company manufactures slacks and jeans under a variety of brand names, such as Kickers and 101 Denims. Slacks and jeans are assembled by a variety of different sewing operations. Assume that the sales budget for Kickers and 101 Denims shows estimated sales of 30,870 and 71,500 pairs, respectively, for March 2016. The finished goods inventory is assumed as follows:

	Kickers		101 Denims
March 1 estimated inventory	1,380		2,020
March 31 desired inventory	510		2,520

Assume the following direct labor data per 10 pairs of Kickers and 101 Denims for four different sewing operations:

	Direct Labor per 10 Pairs
	Kickers		101 Denims
Inseam	22	minutes	15	minutes
Outerseam	26		18
Pockets	8		11
Zipper	13		7
Total	69	min	51	min

Prepare the March direct labor cost budget for the four sewing operations, assuming a $12 wage per hour for the inseam and outerseam sewing operations and a $17 wage per hour for the pocket and zipper sewing operations.

Two-Leg Company
Direct Labor Cost Budget
March 2016 (assumed data)
	Inseam	Outerseam	Pockets	Zipper	Total
Kickers
101 Denims
Total minutes
Total direct labor hours
Direct labor rate	x $	x $	x $	x $
Total direct labor cost	$	$	$	$	$