PREPARING A DIRECT LABOR BUDGET Sherwood, Inc. makes pet crates. Planned production in units for the first three months of the coming year is:

January 30,150 February 29,300 March 31,450 Each crate takes 0.4 direct labor hours. The average wage is $18 per hour.

Required:

Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter.

Cornerstone Exercise