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 show estimated sales of 37,050 and80,430 pairs, respectively, for May. The finished goods inventory is assumed as follows:

Dockers. 501 Jeans

May 1 estimated inventory. 1,660. 2,270

May 31 desired inventory. 610. 2,840

Assume the following direct labor data per 10 pairs of dockers and 501 jeans for four different sewing operations:

Direct Labor per 10 Pair

Dockers. 501 Jeans

Inseam. 21minutes. 14 minutes

Outerseam. 25. 17

Pockets. 8. 10

Zipper. 12. 7

Total. 66 minutes. 48 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 entersubtracted or negative numbers use a minus sign.

Two Leg Company Production Budget

For the month Ending May 31 (assume data)

Expected units to be sold. Dockers. 501 jeans

__________________

Total units available

Total to be produced

b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $12 wage per hour for the Insham and outerseam sewing operations and a $19 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in for columns: inseam, outerseam, pockets, and zipper.

Two-Leg Company

Direct Labor Cost Budget

For Month Ending May 31 (assumed data)

Inseam. Outerseam. Pockets. Zipper. Total

Dockers

501 jeans

Total minutes

Total direct labor hours

Direct labor rates. X$. X $. X $. X $

Total direct labor cost. $. $. $. $. $