Ace Racket Company manufactures two types of tennis rackets, the Junior and Ace Master models. The production budget for August 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:
Forming Department ....... $19.00 per hour
Assembly Department ....... $12.00 per hour
Prepare the direct labor cost budget for August2006.

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Junior Ace Master Production budget 5,300 units 19,600 units Forming Department Assembly Department Junior Ace Master 0.20 hour per unit 0.30 hour per unit 0.30 hour per unit 0.50 hour per unit