Cornerstone Exercise 9-24            Preparing a Direct Labor Budget

Patrick Inc. makes industrial solvents. Planned production in units for the first three months of the coming year is:

 

 

 

January

43,800

February

41,000

March

50,250

Each drum of industrial solvent takes 0.3 direct labor hours. The average wage is $18 per hour.

 

Required:

Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter.

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