The production budget for Zink Company shows units to be produced as follows: July, 620; August, 680;

Question:

The production budget for Zink Company shows units to be produced as follows: July, 620; August, 680; September, 540. Each unit produced requires two hours of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September. Prepare a direct labor budget for the months July, August, and September.