Refer to the information in M8-5 for Preston, Inc. Each unit requires 1.75 hours of direct labor, and labor wages average $9 per hour. Prepare Preston’s direct labor budget for July and August.
Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 480 units in July and 400 units in August. Each unit requires 10 feet of wood at a cost of $1.50 per foot. Preston wants to always have 300 feet of wood on hand in materials inventory. Prepare Preston’s raw materials purchases budget for July and August.

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