Gonzales, Inc., is preparing its direct labor budget for 2011 from the following production budget based on a calendar year.

Quarter Units

1 ......... 20,000

2 ......... 25,000

3 ......... 35,000

4 ......... 30,000

Each unit requires 1.6 hours of direct labor.

Instructions

Prepare a direct labor budget for 2011. Wage rates are expected to be $15 for the first 2 quarters and $16 for quarters 3 and 4.