Salt Company is preparing its direct labor budget for 2020 from the following production budget based on a calendar year:

Quarter Units

1 80,000

2 40,000

3 60,000

4 100,000

Each unit requires 1.5 hours of direct labor. The union contract provides for a 20% increase in wage rate from $10 to $12 per hour on October 1.

Instructions

Prepare a direct labor budget for 2020.