Problem:
Cornell Company is preparing its direct labor budget for 2015 from the following production budget based on a calendar year: Quarter Units
- 20,000
- 25,000
- 30,000
- 50,000
Each unit requires 2 hours of direct labor. The union contract provides for the wage rate to be $11 per hour for the first 3 quarters and a wage increase to $13 per hour on October 1.
Required:
Question: Prepare a direct labor budget for 2015.
Note: Please describe comprehensively and provide step by step solution.