QUESTION 5 1 points Direct Labor Budget So now we need to determine our direct labor needs. Direct labor includes all of the employees who are required to actually manufacture the shoes. These are the people working on the production floor. This information is important, so they don't run into a labor shortage and can plan for potential adjustments in their labor needs. Another use for this budget is to schedule plant shutdowns for deaning and maintenance. Without the completion of the other budgets we have done, we couldn't fill in all the blanks in the direct labor budget So what new information might we need to complete this budget? Well the biggest one is how much time does it take to complete a pair of shoes? Then we need to know our cost per hour for our direct labor. This cost per hour includes wages, payroll taxes and fringe benefits for each of our production employees. Don't forget those things, as they can make a huge impact on the cost of an employee per hour! One pair of shoes takes 0.5 labor hours $20/ hour average What is the total direct labor for Quarter 2 and Quarter 4. Direct Labor Budget Required production in pairs Direct Labor hours/unit Total direct labor hours needed 250 250 300 1,025 Direct labor cost per hour Total direct labor cost 20,500 $5,000 and $5,000 $5,000 and 56,000 $6,000 and $6,000 None of these 225