Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro
ID: 2573490 • Letter: A
Question
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 6,300 units 23,100 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 0.75 hour per unit The direct labor rate for each department is as follows: Forming Department $18 per hour Assembly Department $8 per hour Prepare the direct labor cost budget for July 20Y9.
Explanation / Answer
Forming Department Assembly Department Hours required for production: Junior 1575 3150 Pro Striker 6930 17325 Total 8505 20475 Hourly rate 18 8 Total direct labor cost 153090 163800