Selling price = $15 per unit
Variable costs - variable manufacturing costs = $5 per unit
variable selling costs = $2 per unit
Fixed costs - Fixed manufacturing costs = 4 per unit
Fixed selling costs = $1 per unit
Actually production unit = 102000 units
Sold units = 96000 units

Prepare an income statement for the year ended for the year using Absorption costing.

Question 

September October November December January
sales (units) 8000    12000 13000 16000 15000
Direct manufacturing laborshour per unit 1.79 1.75 1.70 1.65 1.60
Direct manufacturing labor rate per unit $15.75 $16.00 $16.50 $17.50 $17.50
Ending inventory required is the next month sales , plus one half the following months sales
The ending inventory in august was 15000 units
Each employee is required to contributed to Canada pension plan in the order of 4.9% of wages, this is matched by the employer
Workers compensation expenses are 1.9% of the wage total
Employment insurance is 1.85% of wages and the employer pays 1.4 times the rate charged to the employee.

Required :
prepare a labor budget showing production requirements, labor hours and costs for the month of October.