Question

Marigold, Inc., is preparing its direct labor budget for 2017 from the following production budget based on a calendar year. Quarter Units Quarter Units 1 20,110 3 35,370 2 25,410 4 30,440 Each unit requires 1.70 hours of direct labor. Prepare a direct labor budget for 2017. Wage rates are expected to be $18 for the first 2 quarters and $20 for quarters 3 and 4. (Round Direct labor time per unit answers to 2 decimal places, e.g. 52.65.) MARIGOLD, INC. Direct Labor Budget Quarter 1 2 3 4 Year $ $ $ $ $ $ $ $ $

Answer 1

Direct labor budget

	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year
Production unit	20110	25410	35370	30440
Labor hour per unit	1.7	1.7	1.7	1.7
Production labor hour	34187	43197	60129	51748
Rate per hour	18	18	20	20
Direct labor cost	615366	777546	1202580	1034960	3630452