George 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 Standard, the Deluxe, and the Premium models.
The company is currently analyzing direct labor 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:
Standard .......................................................... 520
Deluxe .............................................................. 730
Premium ........................................................... 890
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:

Assembly Cutting Estimated hours per unit: Standard 1.5 2.5 Deluxe. Premium. 1.8 2.9 1.9 2.0 Direct labor hour rate.. $8 $10