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Vargas Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.79 direct labor-hours. The direct labor

Vargas Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.79 direct labor-hours. The direct labor rate is $11.40 per direct labor-hour. The production budget calls for producing 7,300 units in October and 7,100 units in November. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for

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