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LBJ is preparing its direct labour budget from the following production budget for a full calendar year: Quarter Units Quarter Units 1 20,000 3 35,000

LBJ is preparing its direct labour budget from the following production budget for a full calendar year:

Quarter Units Quarter Units
1 20,000 3 35,000
2 25,000 4 30,000

Each unit requires .2 hours of direct labour.

a) How many hours of direct labour will be required in quarter 2? Answer hours b) What is the total direct labour budget in quarter 3? Each unit is assigned $9.20 of labour costs. $ Answer

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