Neely, Inc._direct labor budget_Year December 31, 2012

Neely, Inc., is preparing its direct labor budget for 2012 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.
Complete the direct labor budget for 2012. Wage rates are expected to be $15 for the first 2 quarters and $16 for quarters 3 and 4.

                                      NEELY, INC.
                                      Direct Labor Budget
                   For the Year Ending December 31, 2012

                                                          Quarter
                                                         1       2       3       4                 Year
Units to be produced
Direct labor time (hours) per unit   ×       ×       ×       × 
Total required direct labor hours
Direct labor cost per hour              × $    × $    × $    × $
Total direct labor cost                     $       $       $       $                 $