Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production
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Question:
Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows:
Junior | Pro Striker | |
Production budget | 6,700 units | 18,800 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 | 0.20 hour per unit | 0.50 hour per unit |
Pro Striker | 0.35 hour per unit | 0.70 hour per unit |
The direct labor rate for each department is as follows:
Forming Department | $20.00 per hour |
Assembly Department | $11.00 per hour |
Prepare the direct labor cost budget for July.
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