Question

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	6,800 units	21,200 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	0.5 hour per unit
Pro Striker	0.35 hour per unit	0.7 hour per unit

The direct labor rate for each department is as follows:

Forming Department	$19 per hour
Assembly Department	$11 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
Pro Striker
Total hours required
Hourly rate	x$	x$
Total direct labor cost	$	$

Answer 1

Direct Labor Cost Budget for March:
MatchPoint Racker Company
Direct Labor Cost Budget
For the Month Ending March 31
		Forming Department		Assembly Department
Hours Required for Production:
Junior	0.25*6800	1700	0.5*6800	3400
Pro Striker	0.35*21200	7420	0.7*21200	14840
Total Hours Required		9120		18240
Hourly Rate		$19		$11
Total Direct Labor Cost	9120*$19	$173,280	18240*$11	$200,640