Deep Valley Foods manufactures a product that is first smoked and then packed for shipment to customers. During a normal month the products direct labor cost per pound is budgeted using the following information.

	Direct Labor Hours (per pound)	Budgeted Direct Labor Cost (per hour)
Process:
Smoking	0.08		$20
Packing	0.06		12

The budget for March calls for the production of 500,000 pounds of product. However, Marchs direct labor costs for smoking are expected to be 5 percent above normal due to anticipated scheduling inefficiencies. Yet direct labor costs in the packing room are expected to be 4 percent below normal because of changes in equipment layout.

Prepare a budget for direct labor costs in March using three column headings: Total, Smoking, and Packing.

DEEP VALLEY FOODS Budget for Direct Labor Costs For the Month Ended March 31st
	Total	Smoking	Packing
Smoking
Packing
Totals