Madden 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: the Zip, the Flash, and the Royal models. The company is currently analyzing direct labour hour requirements for the upcoming year.

Budgeted unit production for each of the products is as follows:
Number of units to be produced
Product model:
Zips................................................................................. 500
Flashes............................................................................. 700
Royals............................................................................. 800
Requirement
Prepare a direct labour budget for the upcoming year that shows the budgeted direct labour costs for each department and for the company as a whole.

Transcribed Image Text:

Cutting Assembly Estimated hours per unit: Zips Flashes.. lkoyals 2.0 2.4 2.3 1.5 1.2 Direct labour hour rate $10 $12