Pacer, Inc. 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.

Use the information provided to answer the following questions:

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