Reference no: EM131135434
Production and direct labor cost budgets
Levi Strauss & Co. manufactures slacks and jeans under a variety of brand names, such as Dockers® and 501 Jeans®. Slacks and jeans are assembled by a variety of different sew- ing operations. Assume that the sales budget for Dockers and 501 Jeans shows estimated sales of 23,600 and 53,100 pairs, respectively, for May 2016. The finished goods inventory is assumed as follows:
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Dockers
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501 Jeans
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May 1 estimated inventory
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670
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1,660
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May 31 desired inventory
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420
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1,860
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Assume the following direct labor data per 10 pairs of Dockers and 501 Jeans for four different sewing operations:
Direct Labor per 10 Pairs
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Dockers
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501 Jeans
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Inseam
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18 minutes
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9 minutes
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Outerseam
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20
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14
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Pockets
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6
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9
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Zipper
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12
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6
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Total
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56 minutes
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38 minutes
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a. Prepare a production budget for May. Prepare the budget in two columns: Dockers®and 501 Jeans®.
b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $13 wage per hour for the inseam and outerseam sewing operations and a $15 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outerseam, pockets, and zipper.
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Production and direct labor cost budgets
: Levi Strauss & Co. manufactures slacks and jeans under a variety of brand names, such as Dockers® and 501 Jeans®. Slacks and jeans are assembled by a variety of different sew- ing operations. Assume that the sales budget for Dockers and 501 Jeans..
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