In: Accounting
MatchPoint Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows:
Junior | Pro Striker | |
Production budget | 6,000 units | 22,200 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 | 0.4 hour per unit |
Pro Striker | 0.35 hour per unit | 0.75 hour per unit |
The direct labor rate for each department is as follows:
Forming Department | $18 per hour |
Assembly Department | $10 per hour |
Prepare the direct labor cost budget for March.
MatchPoint Racket Company | ||
Direct Labor Cost Budget | ||
For the Month Ending March 31 | ||
Forming Department |
Assembly Department |
|
Hours required for production: | ||
Junior | fill in the blank 1 | fill in the blank 2 |
Pro Striker | fill in the blank 3 | fill in the blank 4 |
Total hours required | fill in the blank 5 | fill in the blank 6 |
Hourly rate | x$fill in the blank 7 | x$fill in the blank 8 |
Total direct labor cost | $fill in the blank 9 | $fill in the blank 10 |
Direct labor cost budget | ||
For the month ending March 31 | ||
Forming Department | Assembly Department | |
Hours required for Production: | ||
Junior | 1,500 | 2,400 |
Pro Striker | 7,770 | 16,650 |
Total Hours required | 9,270 | 19,050 |
Hourly Rate | $ 18.00 | $ 10.00 |
Total Direct labor Cost | $ 166,860 | $ 190,500 |