Texas Rex sells t-shirts. Expected sales for each quarter is 1000, 1200, 1500, and 2000 t-shirts at $10.00 each. They anticipate no price change.

The Direct Labor Budget shows how many hours are required for production and the total cost of those hours. It takes 0.12 hours to produce one t-shirt. The average wage cost per hour is $10.

Texas Rex, Inc.

Direct Labor Budget

For the year ending December 31, 2018

Q1 Q2 Q3 Q4 Total

Units to be Produced

Direct Labor time per unit _______ _______ ________ _______ ________

Total Hours Needed

Avg. Wage cost per hour _______ _______ ________ _______ ________

Total Direct Labor Cost