1. Flexible Budgeting

At the beginning of the period, the Fabricating Department budgeted direct labor of $115,500 and equipment depreciation of $25,000 for 10,500 hours of production. The department actually completed 13,200 hours of production.

Determine the budget for the department, assuming that it uses flexible budgeting. $_________

2. Pasadena Candle Inc. budgeted production of 39,000 candles for January. Each candle requires molding. Assume that 15 minutes are required to mold each candle. If molding labor costs $16.5 per hour, determine the direct labor cost budget for January.

Round total direct labor cost to the nearest dollar, if required.

Pasadena Candle Inc. Direct Labor Cost Budget For the Month Ending January 31
Hours required for assembly:
Candles			____	min.
Convert minutes to hours			____	min.
Molding hours			____	hrs.
Hourly rate			$____
Total direct labor cost			$____