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 27,780 and 50,640 pairs, respectively, for May. The finished goods inventory is assumed as follows:

	Kickers		101 Denims
May 1 estimated inventory	1,240		1,430
May 31 desired inventory	460		1,790

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	20	minutes	14	minutes
Outerseam	24		17
Pockets	8		10
Zipper	11		7
Total	63	minutes	48	minutes

a. Prepare a production budget for May.

Two-Leg Company
Production Budget
May (assumed data)
	Kickers	101 Denims
Expected units to be sold	fill in the blank 62258eff703ffd0_1	fill in the blank 62258eff703ffd0_2
	fill in the blank 62258eff703ffd0_4	fill in the blank 62258eff703ffd0_5
Total units	fill in the blank 62258eff703ffd0_6	fill in the blank 62258eff703ffd0_7
	fill in the blank 62258eff703ffd0_9	fill in the blank 62258eff703ffd0_10
Total units to be produced	fill in the blank 62258eff703ffd0_11	fill in the blank 62258eff703ffd0_12

b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $9 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
May (assumed data)
	Inseam	Outerseam	Pockets	Zipper	Total
Hours required for production:
Kickers	fill in the blank 916c3705ffdbf97_1	fill in the blank 916c3705ffdbf97_2	fill in the blank 916c3705ffdbf97_3	fill in the blank 916c3705ffdbf97_4
101 Denims	fill in the blank 916c3705ffdbf97_5	fill in the blank 916c3705ffdbf97_6	fill in the blank 916c3705ffdbf97_7	fill in the blank 916c3705ffdbf97_8
Total minutes	fill in the blank 916c3705ffdbf97_9	fill in the blank 916c3705ffdbf97_10	fill in the blank 916c3705ffdbf97_11	fill in the blank 916c3705ffdbf97_12
Convert minutes to hours	fill in the blank 916c3705ffdbf97_13	fill in the blank 916c3705ffdbf97_14	fill in the blank 916c3705ffdbf97_15	fill in the blank 916c3705ffdbf97_16
Hourly rate	x $fill in the blank 916c3705ffdbf97_17	x $fill in the blank 916c3705ffdbf97_18	x $fill in the blank 916c3705ffdbf97_19	x $fill in the blank 916c3705ffdbf97_20
Total direct labor cost	$fill in the blank 916c3705ffdbf97_21	$fill in the blank 916c3705ffdbf97_22	$fill in the blank 916c3705ffdbf97_23	$fill in the blank 916c3705ffdbf97_24	$fill in the blank 916c3705ffdbf97_25