Question

# Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The...

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 7,500 units 22,700 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 0.20 hour per unit 0.50 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 \$16.00 per hour Assembly Department \$9.00 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 fill in the blank 1 fill in the blank 2 Pro Striker fill in the blank 3 fill in the blank 4 Total 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

 Ace Racket Company Direct Labor Cost Budget For the Month Ending July 31 Forming Department Assembly Department Hours required for production: Junior 7,500 X 0.20 = 1,500 7,500 X 0.50 = 3,750 Pro Striker 22,700 X 0.35 = 7,945 22,700 X 0.75 = 17,025 Total 9,445 20,775 Hourly rate x \$16 x \$9 Total direct labor cost \$151,120 \$186,975

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