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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. Slacks
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 21,610 and 44,680 pairs, respectively, for May. The finished goods inventory is assumed as follows: Kickers 101 Denims May 1 estimated inventory 970 1,260 May 31 desired inventory 360 1,580 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 21 minutes 14 minutes Outerseam 25 17 Pockets 8 10 Zipper 12 [ 7 Total 66 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 Total units 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 $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 Kickers 101 Denims Total minutes Total direct labor hours Direct labor rate x $1 X $ x $ X $1 Total direct labor cost
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