Laughton Industries manufactures three models of a product in a single plant with two departments: Cutting and
Question:
Laughton 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, which are the Flash, the Regal, and the Imperial models. The company is currently analyzing direct labor hour requirements for the upcoming year.
________________________________________________________CuttingAssembly
Estimated hours per unit:
Flashes ................................................................................................ 1.6.................2.4
Regals ................................................................................................. 1.1.................2.1
Imperials ..............................................................................................1.0.................2.0
Direct labor hour rate .........................................................................$10.................$12
Budgeted unit production for each of the products is as follows:
________________________________________________Number of units to be produced
Product model:
Flashes .................................................................................................... 590
Regals ..................................................................................................... 760
Imperials ................................................................................................. 810
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.
Step by Step Answer: