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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

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 27,780 and 62,550 pairs, respectively, for March 2016. The finished goods inventory is assumed as follows:

Kickers 101 Denims
March 1 estimated inventory 1,240 1,760
March 31 desired inventory 460 2,210

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 March.

Two-Leg Company
Production Budget
March 2016 (assumed data)
Kickers 101 Denims
Expected units to be sold
Total units
Total units to be produced

b. Prepare the March direct labor cost budget for the four sewing operations, assuming a $12 wage per hour for the inseam and outerseam sewing operations and a $19 wage per hour for the pocket and zipper sewing operations.

Two-Leg Company
Direct Labor Cost Budget
March 2016 (assumed data)
Inseam Outerseam Pockets Zipper Total
Kickers
101 Denims
Total minutes
Total direct labor hours
Direct labor rate x $ x $ x $ x $
Total direct labor cost $ $ $ $ $

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