Prepare a direct labor budget for the upcoming year

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Reference no: EM13230270

Madden Industries manufactures three models of a product in a single plant with two departments cutting and assembly. The company has estimated costs for each of the three product models the zip, the flash and the royal models. The company is currently analyzing direct labor hour requirements for the upcoming year: estimated hours per unit Cutting: zips 1, flashes 1.5, Royals 1.2 direct labor hour rate = $10, estimated hours per unit Assembly: zips 2, flashes 2.4, Royals 2.3 direct labor hour rate = $12. The budgeted unit productions for each of the products are as follows Zips=500, Flashes=700, Royals=800. Prepare a direct labor budget for the upcoming year that shows the budgeted direct labor cost for each department and for the company as a whole.

Reference no: EM13230270

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