The production budget for Kaminski Products shows the company expects to produce 500 units in the first quarter. Assuming each unit of product requires 3 direct labor hours at a cost of $13 per hour, prepare a direct labor budget for the first quarter using Exhibit 9.4 as a guide.

Exhibit 9.4

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Direct Labor Budget for Jerry's Ice Cream Jerry's Ice Cream Direct Labor Budget Year Ending December 31 Units to be produced (Exhibit 9.2) Direct labor hours per unit Total direct labor hours needed in production Labor rate per hour Total direct labor cost Direct labor cost per unit* Quarter 1 2 3 4 40,800 49,200 59,200 X 0.10 4,080 X 0.10 4,920 X 0.10 5,920 X $13 X $13 X $13 $53,040 $63,960 $76,960 *$1.30 direct labor cost per unit = 0.10 direct labor hours per unit X $13 per hour. 51,200 X 0.10 5,120 X $13 $66,560 Year 200,400 X 0.10 20,040 X $13 $260,520 $1.30