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

question 66

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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.
 Product  Shaping  Assembly  R2D2 0.50.4 T3E3 0.70.6 Labor rate per hour $9$12\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.


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