Acc561 Managerial Accounting: E9-7 Neely, Inc., is preparing its direct labor budget

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Acc561 Managerial Accounting
E9-7
Neely, Inc., is preparing its direct labor budget for 2008 from the following production budget based on a calendar year.
Quarter Units Quarter Units
1 20,000 3 35,000
2 25,000 4 30,000
Each unit requires 1.6 hours of direct labor.

Prepare a direct labor budget for 2008. Wage rates are expected to be $15 for the first 2 quarters and $16 for quarters 3 and 4.
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