Preparing a Direct Labor Budget

Patrick Inc. makes industrial solvents. Planned production in units for the first three months of the coming year is:

January	45,000
February	55,000
March	65,000

Each drum of industrial solvent takes 0.3 direct labor hours. The average wage is $17.50 per hour.

Required:

Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer.

Direct Labor Budget:	January	February	March	Total
Units to be produced
Direct labor hrs per unit
Total direct labor hrs
Wage rate	$	$	$	$
Direct labor cost	$	$	$	$