19 The manufacturing division manager of Davison Enterprises has submitted the following production forecast (in units) for each quarter of the next fiscal year. The plant produces seats for motorcycles: Fourth Quarter First Quarter 13,000 Second Quarter 12,400 Third Quarter 12,500 Units to be produced 12,900 Each unit requires 0.40 direct labour-hours, and employees are paid $13 per hour. 1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units. Davison Enterprises Direct Labor Budget First Quarter Second Quarter Third Quarter Fourth Quarter Year Units to be produced Direct labor time per unit (hours) Total direct labor hours needed Direct labor cost per hour Total direct labor cost 2. Prepare the company's direct labour budget for the next fiscal year, assuming that the direct labour workforce is not adjusted each quarter. Instead, assume that the company's direct labour workforce consists of permanent employees who are guaranteed to be paid for at least 5,000 hours of work each quarter. If the number of required direct labour-hours is less than this number, the workers are paid for 5,000 hours anyway. Any hours worked in excess of 5,000 hours in a quarter are paid at a rate of 1.5 times the normal hourly rate for direct labour. Davison Enterprises Direct Labor Budget First Quarter Second Quarter Third Quarter Fourth Quarter Year Total direct labor hours needed Regular hours paid Overtime hours paid Wages for regular hours Overtime wages Total direct labor cost