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Production and Direct Labor Cost Budgets Levi Strauss & Co. manufactures slacks and jeans under a variety of brand names, such as Dockers and S01 Jeans Slacks and jeans are assembled by a variety of different sewing operations. Assume that the sales budget for Dockers and 501 Jeans shows estimated sales of 23,600 and 53,100 pairs, respectively, for May The finished goods inventory is assumed as follows: Dockers 501 Jeans May I estimated Inventory 670 1,660 May 31 desired inventory 420 1,860 Assume the following direct labor data per 10 pairs of Dockers and 501 Jeans for four different sewing operations Direct Labor per 10 Pairs Dockers 501 Jeans Inseam 18 minutes 9 minutes Outerseam 20 14 Pockets 6 9 12 6 Zipper Total 56 minutes 38 minutes b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $13 wage per hour for the inseam and outerseam sewing operations and a s15 wage per hour for the pocket and zipper sewing operations. Prepare the direct labor cost budget in four columns: Inseam, outerstam, pockets, and zipper, Levi Strauss & Co. Direct Labor Cost Budget For the Month Ending May 31 (assumed data) Inseam Outerscam Pockets Zipper Dockers Total 501 Jeans Total minutes >> 2.022 1.013 1.000 Total direct labg hours Direct labor rate 15 15 XS 13 X 13 X 76,181 19,500 15.000 $ 26,286 15,495 Total direct labor cost

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