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Question

USugar Company is preparing its direct

labor budget for 2017 from the following production budget based on a calendar year:

                               Quarter                         Units 

                                   1                             80,000

                                   2                             40,000

                                   3                             60,000

                                   4                           100,000

Each unit requires 1.5 hours of direct labor. The union contract provides for a 10% increase in wage rate to $11 per hour on October 1.

 

 

Instructions

Prepare a direct labor budget for 2017

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