DIRECT LABOR BUDGET Pendel Company produces a variety of garden tools. The production budget for rakes is shown for the following months:

Units March 50,000 April 60,000 May 30,000 June 28,000 Each rake produced requires (on average) 0.15 direct labor hour. The average cost of direct labor is $18 per hour.

Required:

Prepare a direct labor budget for March, April, and May, showing the hours needed and the direct labor cost for each month and in total.

Exercise