Answer:
Explanation:
MatchPoint Racket Company
Direct labour Production Budget.
A. Junior.
Forming Department = 0.10 hours per unit
Assembly Department = 0.20 hour per unit
Direct labor rate: Forming Department = $15.00 per hour
Direct Labour rate: Assembly Department = $14.00 per hour
Labour cost per unit =
Forming = $15 x 0.1 =$1.5
Assembly = $14 x 0.2 = $2.8
Total Per unit = $4.3
Unit produced = 2,200
Labour cost for March = $9,460
PRO
Forming Department = 0.15 hours per unit
Assembly Department = 0.25 hour per unit
Direct labor rate: Forming Department = $15.00 per hour
Direct Labour rate: Assembly Department = $14.00 per hour
Labour cost per unit =
Forming = $15 x 0.15 =$2.25
Assembly = $14 x 0.25 = $3.50
Total Per unit = $5.75
Unit produced = 7,000
Labour cost for March = $40,250
B. MatchPro total labour costs
Forming = ($2.25 x 7,000) + ($1.50 x 2,200) = ($15,750 + $3,300) = $19,050
Assembly = ($3.50 x 7,000) + ($2.80 x 2,200) = ($24,500 + $6,160) = $30,660
Total = $49,710
Total produced = 9,200
Labour cost per Unit in forming= $2.07
Labour cost per Unit in Assembly = $3.33
Total Labour cost per unit = $5.40
C.
Production hours required
Forming = (0.10 x 2,200) + (0.15 x 7,000) = 220 + 1,050 = 1,270 hours
Assembly = (0.20 x 2,200) + (0.25 x 7,000) = 440 + 1,750 = 2,190 hours
Total = 3,460 hours
Production hour per unit = 3,460 / 9,200 = 0.38 hours per unit
