Exercise 4-27 Irene Corporation manufactures three lines of decorative cabinets for stereo and television sets. Skill is required of the workers and it is not easy to hire persons qualified for the work. At the present time, there are 15 qualified employees (all regular workers) available for this type of work and new personnel are to be hired and trained for the busy first six months of 2021. Each employee works approximately 150 hours a month and is paid the rate of P100 per hour. Production plans based on anticipated sales demand, are given next page in units for each of the three lines of cabinets. 142 Florentine Georgian January February March April May June 300 450 520 520 640 950 French Provincial 200 320 430 450 560 600 50 80 80 100 130 150 The direct labor time required for one person to produce cach unit of product has been estimated as follows: Georgian French Provincial Florentine 3 hours 5 hours 6 hours REQUIRED: 1. Prepare a budget of direct labor hours for each month and convert it into a budget of direct labor cost. 2. How many employees will be needed for production each month? How many will be regular, temporary full-time, and temporary part-time. How many new recruits are needed also every month? Irene Corporation Direct Labor Hours & Cost Budget For the First Six Months of 2021 French Provincial(5) Florentine(6) Georgian(3) Total Units Hours Units Hours Units Hours Hours Costs Total January February March April May June 143 Irene Corporation Budgeted Number of Employees For the First Six Months of 2021 Total Hours Total Employees Regular (15) Temporary Full-time Temporary Part-time New Recruits January February March April May June Exercise 4-28 A labor cost budget is being prepared by Julie, Inc. for the first quarter of 2021. Each employee is paid a regular rate of P75 per hour and receives an