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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 Kickers and 101 Denims.
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 24,690 and 47,660 pairs, respectively, for May. The finished goods inventory is assumed as follows: May 1 estimated inventory May 31 desired inventory Kickers 1,100 410 101 Denims 1,340 1,680 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 a. Prepare a production budget for May. Two-Leg Company 48 minutes Production Budget May (assumed data) Kickers 101 Denims Expected units to be sold Total units Total units to be produced b. Prepare the May direct labor cost budget for the four sewing operations, assuming a 59 wage per hour for the inseam and outerseam sewing operations and a $17 wage per hour for the
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