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Hammer Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for May for the two rackets is as follows:
Junior
Pro Striker
Production budget
9,700 units
23,000 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
0.25 hour per unit
0.40 hour per unit
0.30 hour per unit
0.75 hour per unit
The direct labor rate for each department is as follows:
$17.00 per hour
$13.00 per hour
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