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 8,300 units 20,700 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 0.25 hour per unit 0.50 hour per unit Pro Striker 0.30 hour per unit 0.65 hour per unit The direct labor rate for each department is as follows: Forming Department $19.00 per hour Assembly Department $13.00 per hour Prepare the direct labor cost budget for July. Ace Racket Company Direct Labor Cost Budget For the Month Ending July 31 Forming Department Assembly Department Hours required for production: Junior Pro Striker Total Hourly rate x$ x$ Total direct labor cost $ $

Answer 1

Ace Racket Company
Direct Labor Cost Budget
For the Month Ending July 31
	Forming Dept	Assembly Dept
Hrs Required for Production
Junior	2,075.00	4,150.00
ProStriker	6,210.00	13,455.00
Total	8,285.00	17,605.00
Hourly Rate	19.00	13.00
Total Direct Labor Cost	157,415.00	228,865.00

Working Note

HRs Required for Production

Forming Dept

Junior = 8,300*0.25 = 2,075

ProStriker = 20,700*0.3 =6,210

Assembly Dept

Junior = 8,300*0.5 = 4,150

Prostriker = 20,700 x 0.65 = 13,455