Question

Pulham Company is preparing its direct labor budget for 2016 from the following production budget based on a calendar year:

Answer 1

Pulham Company
All Amounts in $
Direct Labor Budget
For The Year Ended December 31, 2016
							Quarter	Quarter	Quarter	Quarter	Total
							1	2	3	4
No. of units produced							60000	30000	45000	75000	210000
No.of hours required per unit							2	2	2	2	2
Total Hours worked							120000	60000	90000	150000	420000
Rate per labor hour							10	10	10	11
Total Direct Labor Cost							1200000	600000	900000	1650000	4350000