The production department of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

Each unit requires 0.55 direct labour-hours, and direct labour-hour workers are paid $12 per hour.

Required:

1. Construct the company?s direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

2. Construct the company?s direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is not adjusted each quarter. Instead, assume that the company?s direct labour workforce consists of permanent employees who are guaranteed to be paid for at least 2,800 hours of work each quarter. If the number of required direct labour-hours is less than this number, the workers are paid for 2,800 hours anyway. Any hours worked in excess of 2,800 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labour.

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2nd Quarter 4th Quarter 1st Quarter 3rd Quarter Units to be produced 9,000 8,000 8,500 7,500