Question

Direct Labor Cost Budget MatchPoint Racket Company manufactures two types of tennis rackets, the Junior and...

Direct Labor Cost Budget

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:
JuniorPro StrikerProduction budget9,000 units20,600 units
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
Forming DepartmentAssembly DepartmentJunior0.25 hour per unit0.5 hour per unitPro Striker0.35 hour per unit0.7 hour per unit
The direct labor rate for each department is as follows:
Forming Department$14 per hourAssembly Department$13 per hour

Prepare the direct labor cost budget for March.

MatchPoint Racket CompanyDirect Labor Cost BudgetFor the Month Ending March 31Forming
DepartmentAssembly
DepartmentHours required for production:JuniorPro StrikerTotal hours requiredHourly ratex$x$Total direct labor cost$$



Homework Answers

Answer #1
Match Point Racket Company
Direct Labor Cost Budget
For the Month Ending March 31
Forming Department Assembly Department
Hours required for production:
Junior 2,250
( 9,000 x 0.25 hour per unit )
4,500
( 9,000 x 0.5 hour per unit )
Pro Striker 7,210
( 20,600 x 0.35 hour per unit )
14,420
( 20,600 x 0.7 hour per unit )
Total hours required 9,460 18,920
x Hourly rate $ 14 $ 13
Total direct labor cost $ 132,440 $ 245,960
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