Exercise 07-5 Manufacturing: Direct labor budget LO P1 The production budget for Manner Company shows units to be produced as follows: July, 620, August, 680, and September, 540. Each unit produced requires two hours of direct labor. The direct labor rate is currently $20 per hour but is predicted to be $21 per hour in September. Prepare a direct labor budget for the months July, August, and September. MANNER COMPANY Direct Labor Budget For July, August, and September July August September Budgeted production (units) 620 680 540 units Total labor hours needed Budgeted direct labor cost