Oswald Company is preparing its direct labor budget for 2005 from the following production budget based on a calendar year:

Quarter Units

1 40,000

2 20,000

3 30,000

4 50,000

Each unit requires 2 hours of direct labor. The union contract provides for a 10% increase in wage rate to $11 per hour on October 1.

Instructions

Prepare a direct labor budget for 2005.