2. Stone Company is preparing its direct labor budget for 2018 from the following production budget based on a calendar year: Units 70,000 40,000 35,000 65,000 Quarter 2 4 Each unit requires 4 hours of direct labor. The union contract provides for a 10% increase in wage rate to $22 per hour on October 1. 1 4 Total Units produced Direct Labor Time per unit Total required DL Hours DL cost per hour Total Direct labor Cost 70,000 40,000 35,000 65,000210,000 $22 HINT: original Wage* 1.10- new wage