Companies prepare direct labor budgets to $\_\_\_\_\_\_\_\_\_$blank.

multiple choice $1$

avoid labor shortages

determine the direct labor$-$hours per unit

ensure timely supply of raw materials

reduce inventories

Knowledge Check $02$

Pro Clean Company, a manufacturer of hand sanitizers, intends to produce $40,000$ units in the third quarter and $35,000$ units in the fourth quarter. Each unit requires $0\mathrm{.}50$ direct labor$-$hours $($DLHs$)$ and the cost of direct labor per hour is $$18.$ What would be the total direct labor cost for the fourth quarter?

multiple choice $2$

$$355,000$

$$360,000$

$$300,000$

$$315,000$

Knowledge Check $03$

William Corporation has a contract with the labor union which guarantees its workers pay for at least $40,000$ hours every quarter. Based on its direct labor budget for the current year, the company estimated it will need $39,000$ direct labor$-$hours during the fourth quarter to produce $13,000$ units of finished goods. Each unit requires $3$ direct labor$-$hours $($DLHs$)$ and the cost of direct labor per hour is $$12$ per hour. What is the total direct labor cost for the fourth quarter?

multiple choice $3$

$$432,000$

$$468,000$

$$480,000$

$$540,000$