Week $8$ Chapter $11($Homework$)$

Direct Labor Cost Budget

HHI Company manufactures two types of bicycles, the Road and the Mountain models. The production budget for March for the two bicycles is as follows:

$\backslash$table$[[,$Road,Mountain$],[$Production budget,$6,900$ units,$19,100$ units$]]$

Both bicycles are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:

$\backslash$table$[[,$Forming Department,Assembly Department$],[$Road$,0\mathrm{.}25$ hour per unit,$0\mathrm{.}50$ hour per unit$],[$Mountain$,0\mathrm{.}35$ hour per unit,$0\mathrm{.}75$ hour per unit$]]$

The direct labor rate for, each department is as follows:

Forming Department $$15\mathrm{.}00$ per hour

Assembly Department $$10\mathrm{.}00$ per hour

Prepare the direct labor cost budget for March. Enter all amounts as positive numbers.

HHI COMPANY

Direct Labor Cost Budget

For the Month Ending March $31$

Line Item Description

Forming Department Assembly Department

Total

Hours required for production:

Road

Mountain

Total

Hourly rate

Total direct labor cost

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