Yoder budgets two direct labor hours per luggage set. Direct labor costs average $ 15 per hour. Use this information and the production budget prepared in Short Exercise S22- 4 to prepare Yoder’s direct labor budget for January and February.

Exercise S22- 4

Review your results from Short Exercise S22- 3. Yoder has 200 luggage sets on hand on January 1 and desires to have an ending inventory equal to 10% of the next month’s sales. March sales are expected to be 1,800 luggage sets. Use this information and the sales budget prepared in Short Exercise S22- 3 to prepare Yoder’s production budget for January and February.