1. Four grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $2.20 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3:

	Year 2				Year 3
	First	Second	Third	Fourth	First
Budgeted production, in bottles	100,000	130,000	190,000	140,000	110,000

The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarters production needs. Some 80,000 grams of musk oil will be on hand to start the first quarter of Year 2.

Required:

Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2.

2.

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Units to be produced	8,400	6,500	7,200	8,100

Each unit requires 0.65 direct labor-hours, and direct laborers are paid $12.00 per hour.

Required:

1. Prepare the companys direct labor budget for the upcoming fiscal year.

Note: Round "Direct labor time per unit (hours)" answers to 2 decimal places.