The manufacturing division manager of Davison Enterprises has submitted the following production forecast (in units) for each quarter of the next fiscal year. The plant produces seats for motorcycles:

First Quarter Second Quarter Third Quarter Fourth Quarter

Units to be produced 11,500 10,900 11,000 11,400

Each unit requires 0.50 direct labour-hours, and employees are paid $13 per hour.

Required:

1.Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units.

Direct Labour Budget

First Quarter Second Quarter Third Quarter Fourth Quarter Year

Units to be produced ............................ ........................... ...................... ........................ .............

Direct labour time per unit(hours) ............................ ........................... ...................... ........................ .............

Total direct labour hours needed ............................ .......................... ...................... ........................ .............

Direct labour cost per hour ............................ ........................... ...................... ........................ .............

Total Direct labour cost ............................ ........................... ...................... ........................ .............

2.Prepare the company's direct labour budget for the next fiscal year, assuming that the direct labour workforce is not adjusted each quarter. Instead, assume that the company's direct labour workforce consists of permanent employees who are guaranteed to be paid for at least 5,500 hours of work each quarter. If the number of required direct labour-hours is less than this number, the workers are paid for 5,500 hours anyway. Any hours worked in excess of 5,500 hours in a quarter are paid at a rate of 1.5 times the normal hourly rate for direct labour.(Do not leave any empty spaces; input a 0 wherever it is required.)

Direct Labour Budget

First Quarter Second Quarter Third Quarter Fourth Quarter Year

Total direct labour hours needed ............................ ........................... ...................... ........................ .............

Regular hours paid ............................ ........................... ...................... ........................ .............

Overtime hours paid ............................ .......................... ...................... ....................... . .............

Wages for regular hours ............................ ........................... ...................... ........................ .............

Overtime wages ............................ ........................... ...................... ........................ .............

Total direct labour cost ............................ ........................... ...................... ........................ .............