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EXERCISE 10-4 Direct Labor Budget [L04d] The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: given 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 000 Units to be produced... 8,000 6,500 7,000 7,500 ected in ng 10% gnored Each unit requires 0.35 direct labor-hours, and direct laborers are paid $12.00 per hour. Required: 1. Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to pro- duce the forecasted number of units produced. 2. Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not the sec- adjusted each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,600 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers excess of 2,600 hours in a quarter are for direct labor. mpute the paid for 2,600 hours anyway. Any hours worked in paid at the rate of 1.5 times the normal hourly rate are
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