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	10,000	9,400	9,500	9,900

Each unit requires 0.60 direct labour-hours, and employees are paid $13 per hour.

Required:

1.

Prepare the companys 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 forecasted number of units.

2.

Prepare the companys direct labour budget for the next fiscal year, assuming that the direct labour workforce is not adjusted each quarter. Instead, assume that the companys direct labour workforce consists of permanent employees who are guaranteed to be paid for at least 5,700 hours of work each quarter. If the number of required direct labour-hours is less than this number, the workers are paid for 5,700 hours anyway. Any hours worked in excess of 5,700 hours in a quarter are paid at a rate of 1.5 times the normal hourly rate for direct labour