Valentine 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 Flash, the Royal, and the Zip models. The company is currently analyzing direct labor hour requirements for the upcoming year.
______________________________________________________Cutting Assembly
Estimated hours per unit:
Flashes ................................................................................................ 1.6.................2.0
Royals ................................................................................................. 1.1.................2.6
Zips ..................................................................................................... 1.2.................2.7
Direct labor hour rate ........................................................................... $9................$10
Budgeted unit production for each of the products is as follows:
_____________________________________________Number of units to be produced
Product model:
Flashes ............................................................................... 590
Royals ................................................................................ 730
Zips .................................................................................... 810
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.