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Week 8 Chapter 1 1 ( Homework ) Direct Labor Cost Budget HHI Company manufactures two types of bicycles, the Road and the Mountain models.

Week 8 Chapter 11(Homework)
Direct Labor Cost Budget
HHI Company manufactures two types of bicycles, the Road and the Mountain models. The production budget for March for the two bicycles is as follows:
\table[[,Road,Mountain],[Production budget,6,900 units,19,100 units]]
Both bicycles are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
\table[[,Forming Department,Assembly Department],[Road,0.25 hour per unit,0.50 hour per unit],[Mountain,0.35 hour per unit,0.75 hour per unit]]
The direct labor rate for, each department is as follows:
Forming Department $15.00 per hour
Assembly Department $10.00 per hour
Prepare the direct labor cost budget for March. Enter all amounts as positive numbers.
HHI COMPANY
Direct Labor Cost Budget
For the Month Ending March 31
Line Item Description
Forming Department Assembly Department
Total
Hours required for production:
Road
Mountain
Total
Hourly rate
Total direct labor cost
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