Exercise 20-5 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 one hour of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 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 620 680 September 540 units Budgeted production (units) Labor rate (per hour) Total labor hours needed Budgeted direct labor cost