Stenback Industries manufactures three models of a product in a single plant with two departments: Cutting and Assembly. The company has estimated costs for each of the three product models, the zip, the imperial, the zoom models.

The company is currently analyzing direct labor hour requirements for the upcoming year.

	Cutting	Assembly
Estimated hours per unit:
Zip. . . . . . . . . . . . .	1.0	2.4
Imperial. . . . . . . .	1.2	2.9
Zoom. . . . . . . . . . .	1.4	2.5
Direct labor hour rate. . . .	$11	$13

Budgeted unit production for each of the products is as follows:

	Number of units to be produced
Product model:
Zip. . . . . . . .	510
Imperial. . .	730
Zoom. . . . . .	880

Requirement

Prepare a direct labor budget for the upcoming year that shows the budgeted direct labor costs for each department and for the company as a whole.

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Prepare the direct labor budget for the Cutting Department, then the Assembly Department, and finally the company as a whole.

Stenback Industries
Direct Labor Budget
For the Upcoming Year
	Zip	Imperial	Zoom	Total
Cutting Department
Units to be produced
Multiply by: Direct labor hours per unit
Total cutting hours required
Multiply by: Direct labor cost per hour
Budgeted direct labor cost