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Sunland, Inc., is preparing its direct labor budget for 2020 from the following production budget based on a calendar year. Quarter Units Quarter Units 1 20,200 3 35,240 2 25,280 4 30,120 Each unit requires 1.80 hours of direct labor. Prepare a direct labor budget for 2020. Wage rates are expected to be $18 for the first 2 quarters and $20 for quarters 3 and 4. (Round Direct labor time per unit answers to 2 decimal places, e.g. 52.50.) SUNLAND, INC. Direct Labor Budget Quarter 1 2 3 4 Year $ $ $ $ $ $ $ $ $

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akiran007

Answer:

Direct Labor Budget for 1st quarter   $ 654480 for 2nd quarter   $ 819072

Direct Labor Budget for 3rd quarter   $ 1268640  for 4th quarter  $ 1084320

Direct Labor Budget for 1st quarter 36360 hours for 2nd quarter  45504 hours

Direct Labor Budget for 3rd quarter 63432 hours  for 4th quarter 54216 hours

Explanation:

We multiply the production units with the direct labor hours per unit to get the total hours which are again multiplied with the wage rate to get the total direct labor wages.

SUNLAND, INC.

Direct Labor Budget

                                                        Quarter                          Quarter

                                                             1                                     2

                                                           Units                            Units

Production Budget                           20,200                      25,280

Direct Labor per unit                         1.8                                   1.8

Total Hours                                       36360                            45504

Wage Rates                                       $ 18                                $ 18

Direct Labor Budget                       $ 654480                 $ 819072

SUNLAND, INC.

Direct Labor Budget

                                                    Quarter                         Quarter

                                                         3                                   4

                                                       Units                           Units

Production Budget                        35,240                          30,120

Direct Labor per unit                         1.8                                   1.8

Total Hours                                      63432                             54216

Wage Rates                                       $ 20                                $ 20

Direct Labor Budget                       $ 1268640              $ 1084320

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