Lily Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has

accumulated the following information for $2022.$

Lily has a labor contract that calls for a wage increase to $$7\mathrm{.}0$ per hour on April $1.$ New labor$-$saving machinery has been installed and

will be fully operational by March $1.$

Lily expects to begin the year with $19,360$ frames on hand and has a policy of carrying an end$-$of$-$month inventory of $100\%$ of the

following month's sales, plus $40\%$ of the second following month's sales.

LILY COMPANY

Direct Labor Budget

For the Quarter Ending March $31,2022$

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