Alleyway Corp. manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow: Strike Turkey Production 2,300 bags 3,100 bags Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows: Cutting Sewing Strike 0.150 hour per bag 0.250 hour per bag Turkey 0.200 hour per bag 0.350 hour per bag Hourly direct labor rates are $11 for the Cutting Department and $15 for Sewing. Required: Determine Alleyway's budgeted direct labor cost for October. (Round your final answers to nearest whole dollar. Do not round your intermediate calculations.)

                                ALLEYWAY Corp.

                         Budgeted Direct Labor Cost  for October

                                      Strike                         Turkey                  Total

 Unit produced             2300bags                3100bags

Cutting                            $3,795                    $6,820                    $10,615

sewing                              8,625                   16,275                    24,900

                                         12,420                     23,095                   35,515

Total budgeted direct labour cost for October is $35,515.

workings

strike

cutting  =  0.150 * 2300*$11     =   $3,795

Sewing  = 0.250*  2300 * $15  =   $8,625

Turkey

Cutting = 0.200*3100* $11     =     $6,820

Sewing = 0.350 * 3100* $15  =     $16,275

Explanation:

Total Budgeted Direct Labor costs                                                     $ 35,515

Explanation:

Computation of Direct labor Cost

                                             Strike                 Turkey                     Total          

Production Units                  2,300                 3,100                      5,400

Cutting per bag hours            0.15                   0.20

Sewing per bag hours            0.25                   0.35

Total Cutting hours                 345                    620                         965

Total Sewing hours                  575                  1,085                       1,660    

Cost per hour - Cutting   $ 11 per hour

Cost per hour Sewing   $ 15

Total labor costs Cutting department ($ 11 per hour 965 hours    = $ 10,615

Total labor costs Sewing department ($ 15 per hour*1,660 hours = $ 24,900

Total Budgeted Direct Labor costs                                                     $ 35,515

the answer should be a)

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