Question: Rodriguez, Inc., is preparing its 2017 direct labor budget from the following production budget based on a calendar year. Room Units Room Units 1 20,380

Rodriguez, Inc., is preparing its 2017 direct labor budget from the following production budget based on a calendar year.

Room

Units

Room

Units

120,380335,220
225,110430,210


Each unit requires 1.60 hours of direct labor.

Prepare a direct labor budget for 2017. 

The wage rates are expected to be $16 for the first 2 quarters and $18 for the 3rd and 4th quarters.

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