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Preparing a Direct Labor Budget Patrick Inc. makes industrial solvents. Planned production in units for the first 3 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. Do not include a multiplication symbol as part of your answer. Patrick Inc. Direct Labor Budget For the Coming First Quarter Direct labor budget: January February March Total Units to be produced Direct labor hrs per unit Total direct labor hrs Wage rate $ $ $ $ Direct labor cost $ $ $ $

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akiran007

Answer:

Patrick Inc.

Direct Labor Budget

For the Coming First Quarter

Direct labor budget:

                                               January        February          March    Total

Total Units to be produced   43,800          41,000          50,250     135050

Direct labor hrs per unit           0.3                 0.3                    0.3       0.3

Total direct labor hrs            13140              12300               15075    40515

Wage rate $ $ $ $                  18                   18                         18       18

Direct labor cost $ $ $ $     236520        221400              271350      729270

Direct labor cost  Budget  January $ 236520

Direct labor cost Budget February $ 221400

Direct labor cost Budget March $ 271350

Direct labor cost Budget Total $ 729270

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