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Alborada Manufacturing Company is engaged in the manufacturing of pillows. The production manager indicates that it takes 0.30 hours of direct labor to produce each

Alborada Manufacturing Company is engaged in the manufacturing of pillows. The production manager indicates that it takes 0.30 hours of direct labor to produce each unit of finished product. The cost of direct labor is $ 9 per hour. Each employee can work 480 hours per quarter.

The budgeted production quarter 2016 is as follows:

First quarter 2016 13,935 units

Second quarter 2016 15,575 units

Third quarter 2016 19,790 units

Fourth quarter 2016 18,975 units

Requested:

1. Prepare the budget for direct labor per quarter 2016.

2. Indicate the approximate number of employees needed per quarter based on the total hours that each one can work.

3. What should the company do not have to lay off employees from quarter to quarter due to fluctuations in production and thus maintain the morale and productivity of their employees?

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