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Question 1: Pacer Ltd. Is preparing its direct labour budget for 2020 from the following production budget for the full calendar year: Quarter 1: 25,000

Question 1: Pacer Ltd. Is preparing its direct labour budget for 2020 from the following production budget for the full calendar year:

Quarter 1: 25,000 units Quarter 2: 20,000 units Quarter 3: 30,000 units Quarter 4: 35,000 units Each unit requires 1.5 hours of direct labour.

Required: Prepare a direct labour budget for 2020. Wage rates are expected to be $20 per hour for all four quarters.

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