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Rodriguez, Inc., is preparing its direct labor budget for 2017 from the following production budget based on a calendar year. Quarter Units Quarter Units 1 20,440 3 35,420 2 25,370 4 30,200 Each unit requires 1.80 hours of direct labor. Prepare a direct labor budget for 2017. 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.) RODRIQUEZ, INC. Direct Labor Budget Quarter 1 2 3 4 Year $ $ $ $ $ $ $ $ $

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Answer and Explanation:

Rodriguez, Inc

Direct Labour Budget

Unit to produce × labour hours for each units = Total hours

Unit 1 $20,440 × 1.80 hours =$36,792

Unit 2 $25,370× 1.80 hours =$45,666

Unit 3 $35,420 ×1.80 hours =$63,756

Unit 4 $30,200×1.80 hours =$54,360

Total hours × Wages rate

Unit 1$36,792 ×$18=$662,256

Unit 2 $45,666×$18=$821,988

Units 3 $63,756 ×$20=$1,275,120

Unit 4 $54,360×$20=$1,087,200

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