Dominion 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 Economy, the Standard, and the Premium models. The company is currently analyzing direct labor hour requirements for the upcoming year.

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.

Transcribed Image Text:

Estimated hours per unit: Economy......... Standard........ Premium. Direct labor hour rate.. Cutting Assembly 1.2 2.8 1.3 2.2 1.4 2.1 $10 $12 Budgeted unit production for each of the products is as follows: Product model: Economy...... Standard... Premium Number of units to be produced 510 700 860