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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 .

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 18,520 and 32,760 pairs, respectively, for May. The finished goods inventory is assumed as follows:

Dockers 501 Jeans
May 1 estimated inventory 830 920
May 31 desired inventory 310 1,160

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 17 minutes 11 minutes
Outerseam 21 14
Pockets 6 8
Zipper 10 6
Total 54 minutes 39 minutes

Question Content Area

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.

Dockers 501 Jeans
Expected units to be sold

fill in the blank d54407fbf016011_1

fill in the blank d54407fbf016011_2

May 1 desired inventoryMay 31 desired inventoryMay 1 estimated inventoryMay 31 estimated inventorySupervisor salaries

- Select -

- Select -

Total units available

fill in the blank d54407fbf016011_6

fill in the blank d54407fbf016011_7

May 1 desired inventoryMay 31 desired inventoryMay 1 estimated inventoryMay 31 estimated inventorySupervisor salaries

- Select -

- Select -

Total units to be produced

fill in the blank d54407fbf016011_11

fill in the blank d54407fbf016011_12

Question Content Area

b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $11 wage per hour for the inseam and outerseam sewing operations and a $16 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outerseam, pockets, and zipper.

Inseam Outerseam Pockets Zipper Total
Dockers

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fill in the blank 5f9788047072052_2

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501 Jeans

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Total minutes

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Total direct labor hours

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fill in the blank 5f9788047072052_14

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Direct labor rate x $fill in the blank 5f9788047072052_17 x $fill in the blank 5f9788047072052_18 x $fill in the blank 5f9788047072052_19 x $fill in the blank 5f9788047072052_20
Total direct labor cost $fill in the blank 5f9788047072052_21 $fill in the blank 5f9788047072052_22 $fill in the blank 5f9788047072052_23 $fill in the blank 5f9788047072052_24 $fill in the blank 5f9788047072052_25

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