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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 18,520 and 32,760 pairs, respectively, for May. The finished goods inventory is assumed as follows: Kickers 101 Denims May 1 estimated Inventory 830 920 May 31 desired inventory 1,160 Assume the following direct labor data per 10 pairs of Kickers and 101 Denims for four different sewing operations Direct Labor per 10 Pairs 310 Kickers 101 Denims Inseam 17 minutes 11 minutes Outerseam 21 14 Pockets 6 8 Zipper 10 6 Total 54 minutes 39 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 $13 wage per hour for the inseam and outersem sewing operations and a $18 wage per hour for the pocket and ripper sewing operations Two-Leg Company Direct Labor Cost Budget May (assumed data) Inseam Outerseam Pockets Zipper Total Hours required for production: Kickers 101 Denims Total minutes Convert minutes to hours X Hourly rate Total direct labor cost
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