Shamokin Manufacturing Produces Two Products, Big and Bigger

Essay

Shamokin Manufacturing produces two products, Big and Bigger.Shamokin expects to sell 20,000 units of Big and 10,000 units of Bigger.Shamokin plans on having an ending inventory of 4,000 units of Big and 2,000 units of Bigger.Currently, Shamokin has 1,000 units of Big in its inventory and 800 units of Bigger.Each product requires two labour operations: molding and polishing.Product Big requires one hour of molding time and one hour of polishing time.Product Bigger requires one hour of molding time and two hours of polishing time.The direct labour rate for molders is $20 per molding hour, and the direct labour rate for polishers is $25 per polishing hour.Required:
Prepare a direct labour budget in hours and dollars for each product.