MatchPoint Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows:
Junior Pro Striker
Production budget..............2,200 units......7,000 units
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
Forming Department Assembly Department
Junior................0.10 hour per unit................0.20 hour per unit
Pro Striker...........0.15 hour per unit................0.25 hour per unit
The direct labor rate for each department is as follows:
Forming Department................$15.00 per hour
Assembly Department...............$14.00 per hour
Prepare the direct labor cost budget for March.