Direct Labor Cost Budget Donner Racket Company manufactures

Direct Labor Cost Budget

Donner Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows:

Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:

The direct labor rate for each department is as follows:

Prepare the direct labor cost budget for March. Enter all amounts as positive numbers.

	Junior	Pro Striker
Production budget	8,200 units	21,100 units

Solution

Direct labor budget Forming department Assembly department Production budget 8200 21100 Total hours required for production Junior 2050 8440 Pro striker 2870 14770 Total hours 4920 23210 Hourly rate 17 11 Total direct labor cost 83640 255310