31.07.2022 - 16:47

# Alleyway corp manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October following: Production Strike 2,500 bags Turkey 3,200 bags Two departmen

Question:

Alleyway corp manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October following:

Production
Strike 2,500 bags
Turkey 3,200 bags

Two departments, Cutting and Sewing, produce bowling bags. Direct Labor hours needed for each style are as follows:

Cutting Sewing
Strike 0.1 hr per bag 0.35 hr per bag
Turkey 0.3 hr per bag 0.35 hr per bag

Hourly direct labor rates are $13 for cutting department and$15 for Sewing.

Required:

Determine Alleyways Budgeted direct labor cost for October. (Round to the nearest whole dollar) Budgeted Direct Labor Cost |Cutting| Sewing??

The budgeted direct labor cost for Alleyway Corp in October can be calculated as follows: For the Strike bags: Direct labor hours needed for cutting = 2,500 * 0.1 = 250 hours Direct labor hours needed for sewing = 2,500 * 0.35 = 875 hours Direct labor cost for cutting = 250 * $13 =$3,250 Direct labor cost for sewing = 875 * $15 =$13,125 For the Turkey bags: Direct labor hours needed for cutting = 3,200 * 0.3 = 960 hours Direct labor hours needed for sewing = 3,200 * 0.35 = 1,120 hours Direct labor cost for cutting = 960 * $13 =$12,480 Direct labor cost for sewing = 1,120 * $15 =$16,800 Total budgeted direct labor cost for October = $3,250 +$13,125 + $12,480 +$16,800 = $45,655 Therefore, Alleyway Corp's budgeted direct labor cost for October is$45,655.