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:
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Junior
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Pro Striker
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Production budget
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9,700 units
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23,000 units
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Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
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Forming Department
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Assembly Department
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Junior
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0.25 hour per unit
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0.40 hour per unit
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Pro Striker
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0.30 hour per unit
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0.75 hour per unit
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The direct labor rate for each department is as follows:
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Forming Department
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$17.00 per hour
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Assembly Department
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$13.00 per hour
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