Question: Preparing a Direct Labor Budget Patrick Inc. makes industrial solvents. Planned production in units for the first three months of the coming year is:
January 43,800
February 41,000
March 50,250
Each drum of industrial solvent takes 0.3 direct labor hours. The average wage is $18 per hour.
Required: Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter.