Direct Labor Budgeting Sanford Shoe Company makes three shoe styles: loafers, work boots, and tennis shoes. The production budget for the next three months for each type of shoe is:

From experience, Sanford’s management knows that it takes 15 minutes of direct labor to make a pair of loafers, 20 minutes to make a pair of work boots, and 12 minutes to make a pair of tennis shoes. At Sanford, direct labor employees are paid $10 per hour.
Prepare a direct labor budget in both hours and costs for each of the three months.

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Work Tennis Loafers Boots Shoes January 2,900 5,400 3,160 February 3,100 6,000 5,400 March 2,750 6,600 4,300