Labor Cost Budget. Coats Cartons, Inc. manufactures two basic product lines—

Sturdee and Rain-Proof. Past experience has shown that 10 units of Sturdee can be produced per labor hour and 8 units of Rain-Proof per labor hour. Direct labor is paid at the rate of $12 per hour, and each employee works approximately 400 hours of productive time each quarter. Production has been estimated for 1999 as follows:

Required:
1. Prepare a schedule showing the total direct labor hours needed each quarter to meet the production requirements. Convert hours to dollars.
2. How many employees will be needed each quarter?

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First quarter Second quarter. Third quarter Fourth quarter Sturdee Units Rain-Proof Units 12,600 12,000 16,200 9,000 14,400 15,000 14,400 18,000