Calculation Of Estimated Labor Base. The direct labor work force of Austin Inc. consists of 150 employees working full time, 8 hours, 5 days a week. Normal capacity assumes that the equivalent of 48 weeks of work can be expected from a full-time employee. LO6 Required: Calculate the following:

(1) The number of direct labor hours to be used in setting up the firm’s factory overhead rate based on nor¬ mal capacity

(2) The number of direct labor hours if management and workers agree on a 10-hour, 4-day workweek