Question

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	9,400 units	23,500 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	0.3 hour per unit	0.6 hour per unit

The direct labor rate for each department is as follows:

Forming Department	$16 per hour
Assembly Department	$10 per hour

Prepare the direct labor cost budget for March.

Answer 1

Solution

MatchPoint Racket Company
Direct Labor Cost Budget
For the Month Ending March 31
	Forming	Assembly
	Department	Department
Hours required for production:
Junior	2350	4700
Pro Striker	7050	14100
Total hours required	9400	18800
Hourly rate	$        16.00	$           10.00
Total direct labor cost	$150,400.00	$   188,000.00