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Production and Direct Labor Cost Budgets Two-Leg Company manufactures slacks and jeans under a variety of brand names, such as Dockers and 501 Jeans, Slacks
Production and Direct Labor Cost Budgets Two-Leg Company 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 27,780 and 53,620 pairs, respectively, for May. The finished goods inventory is assumed as follows: May 1 estimated inventory May 31 desired inventory Dockers 501 Jeans 1,240 460 1,510 1,890 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 Outerseam 17 minutes 11 minutes 21 14 6 10 Pockets Zipper Total 54 minutes 8 6 39 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 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. Two-Leg Company i Production Budget For Month Ending May 31 (assumed data) Expected units to be sold Total units available Dockers 501 Jeans Total units to be produced b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $12 wage per hour for the inseam and outerseam sewing operations and a $18 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outerseam, pockets, and zipper. Two-Leg Company Direct Labor Cost Budget For Month Ending May 31 (assumed data) Inseam Outerseam Pockets Total Dockers 501 Jeans Total minutes Total direct labor hours Direct labor rate Total direct labor cost X 000000 1000000 |2000000 0
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