EXERCISE 9-4 (20 MINUTES)

1. Assuming that the direct labor workforce is adjusted each quarter, the direct labor budget would be:

1st

Quarter 2nd

Quarter 3rd

Quarter 4th

Quarter Year

Units to be produced... 8,000 6,500 7,000 7,500 29,000 Direct labor time per unit (hours) ... × 0.35 × 0.35 × 0.35 × 0.35 × 0.35 Total direct labor-hours needed ... 2,800 2,275 2,450 2,625 10,150 Direct labor cost per hour ... × $12.00 × $12.00 × $12.00 × $12.00 × $12.00 Total direct labor cost... $ 33,600 $ 27,300 $ 29,400 $ 31,500 $121,800