Levi Strauss & Co. manufactures slacks and jeans under a variety of brand names, such as Dockers
Question:
Levi Strauss & Co. manufactures slacks and jeans under a variety of brand names, such as Dockers® and 501 Jeans®. Slacks and jeans are assembled by a variety of different sewing operations. Assume that the sales budget for Dockers and 501 Jeans shows estimated sales of 60,000 and 125,000 pairs, respectively, for May. The finished goods inventory is assumed as follows:
Dockers 501 Jeans May 1 estimated inventory 6,000 15,000 May 31 desired inventory 8,500 10,000 Assume the following direct labor data per 5 pairs of Dockers and 501 Jeans for four different sewing operations:
Direct Labor per 5 Pairs Dockers 501 Jeans Inseam 15 minutes 10 minutes Outer seam 18 15 Pockets 6 4 Zipper 3 2 Total 42 minutes 31 minutes a. Prepare a production budget for May.
LEVI STRAUSS & CO. Production Budget May
(Assumed Data)Dockers® (Units) 501 Jeans® (Units) Expected units to be sold Total units Total units to be produced b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $15 wage per hour for the inseam and outerseam sewing operations and a $17 wage per hour for the pocket and zipper sewing operations. Round your answers to one decimal place, if necessary.
LEVI STRAUSS & CO. Direct Labor Cost Budget May
(Assumed Data)Inseam (minutes) Outerseam (minutes) Pockets (minutes) Zipper (minutes) Total Dockers® 501 Jeans® Total minutes Total direct labor hours Direct labor rate $ $ $ $ Total direct labor cost $ $ $ $ $
Expert Answer:
