Concept explainers
Rodriguez, Inc., is preparing its direct labor budget for 2017 from the following production budget based on a calendar year.
Quarter | Units | ||
1 | 20,000 | ||
2 | 25,000 | ||
Quarter | Units | ||
3 | 35,000 | ||
4 | 30,000 |
Each unit requires 1.5 hours of direct labor.
Instructions
Prepare a direct labor budget for 2017. Wage rates are expected to be $16 for the first 2 quarters and $18 for quarters 3 and 4.
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