Sarusse, Inc., produces two products in a single plant utilizing two departments: Shaping and Assembly. Direct labor hour and dollar requirements for 2010 are being projected using 2009 unit standard labor information. Departmental data and routing sequence information are shown below.
$\begin{array}{|l|c|c|}
\hline {\text { Product }} & \text { Shaping } & \text { Assembly } \
\hline \text { R2D2 } & 0.5 & 0.4 \
\text { T3E3 } & 0.7 & 0.6 \
\text { Labor rate per hour } & \$ 9 & \$ 12 \
\hline
\end{array}$ Management has forecasted that 20,000 units of product R2D2 and 70,000 units of product T3E3 must be produced during 2010.
Prepare a direct labor budget for 2010 that shows the budgeted direct labor cost for each department and the company as a whole.

Question

Sarusse, Inc., produces two products in a single plant utilizing two departments: Shaping and Assembly. Direct labor hour and dollar requirements for 2010 are being projected using 2009 unit standard labor information. Departmental data and routing sequence information are shown below.
 $\begin{array}{|l|c|c|}
\hline {\text { Product }} & \text { Shaping } & \text { Assembly } \
\hline \text { R2D2 } & 0.5 & 0.4 \
\text { T3E3 } & 0.7 & 0.6 \
\text { Labor rate per hour } & \$ 9 & \$ 12 \
\hline
\end{array}$ Management has forecasted that 20,000 units of product R2D2 and 70,000 units of product T3E3 must be produced during 2010.
Prepare a direct labor budget for 2010 that shows the budgeted direct labor cost for each department and the company as a whole.

Quizplus · Accepted Answer

The Answer of Sarusse, Inc., produces two products in a single plant utilizing two departments: Shaping and Assembly. Direct labor hour and dollar requirements for 2010 are being projected using 2009 unit standard labor information. Departmental data and routing sequence information are shown below.
 $\begin{array}{|l|c|c|}
\hline {\text { Product }} & \text { Shaping } & \text { Assembly } \
\hline \text { R2D2 } & 0.5 & 0.4 \
\text { T3E3 } & 0.7 & 0.6 \
\text { Labor rate per hour } & \$ 9 & \$ 12 \
\hline
\end{array}$ Management has forecasted that 20,000 units of product R2D2 and 70,000 units of product T3E3 must be produced during 2010.
Prepare a direct labor budget for 2010 that shows the budgeted direct labor cost for each department and the company as a whole.

Sarusse, Inc Management Has Forecasted That 20,000 Units of Product R2D2 and Two