Question

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

Quarter		Units		Quarter		Units
1		20,360		3		35,200
2		25,280		4		30,170

Each unit requires 1.80 hours of direct labor.

Prepare a direct labor budget for 2017. Wage rates are expected to be $18 for the first 2 quarters and $20 for quarters 3 and 4. (Round Direct labor time per unit answers to 2 decimal places, e.g. 52.65.)

SHEFFIELD, INC. Direct Labor Budget For the Quarter Ending December 31, 2017December 31, 2017For the Year Ending December 31, 2017
		Quarter
		1		2		3		4		Year
Total Direct Labor CostDirect Labor Time Per UnitTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursDirect Labor Cost Per HourDirect Materials PurchasesUnits to be ProducedBeginning Direct MaterialsEnding Direct MaterialsCost Per Pound
Direct Materials PurchasesCost Per PoundTotal Direct Labor CostDirect Labor Cost Per HourDirect Labor Time Per UnitBeginning Direct MaterialsEnding Direct MaterialsTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursUnits to be Produced
Units to be ProducedTotal Required Direct Labor HoursDirect Materials PurchasesDirect Labor Cost Per HourDirect Labor Time Per UnitTotal Cost of Direct Materials PurchasesBeginning Direct MaterialsCost Per PoundEnding Direct MaterialsTotal Direct Labor Cost
Units to be ProducedCost Per PoundDirect Labor Cost Per HourTotal Required Direct Labor HoursDirect Labor Time Per UnitBeginning Direct MaterialsEnding Direct MaterialsDirect Materials PurchasesTotal Cost of Direct Materials PurchasesTotal Direct Labor Cost		$		$		$		$
Direct Labor Time Per UnitDirect Labor Cost Per HourCost Per PoundUnits to be ProducedTotal Direct Labor CostBeginning Direct MaterialsTotal Required Direct Labor HoursDirect Materials PurchasesEnding Direct MaterialsTotal Cost of Direct Materials Purchases		$		$		$		$		$

Answer 1

SHEFFIELD, INC. Direct Labor Budget For the Quarter Ending December 31, 2017December 31, 2017For the Year Ending December 31, 2017
		Quarter
		1		2		3		4		Year
Unit to be produced		20360		25280		35200		30170
Direct labor time per unit		1.8		1.8		1.8		1.8
Total required direct labor hour		36648		45504		63360		54306
Direct labor cost per hour		$18		$18		$20		$20
Total direct labor cost		$659664		$819072		$1267200		$1086120		$3832056