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The union contract provides for wage rate to be 11 per hour

Question - Cornell Company is preparing its direct labor budget for 2012 from the following production budget based on a calendar year:

Quarter Units

1 20,000

2 25,000

3 30,000

4 50,000

Each unit requires 2 hours of direct labor. The union contract provides for the wage rate to be $11 per hour for the first 3 quarters and a wage increase to $13 per hour on October 1.

INSTRUCTIONS - Prepare a direct labor budget for 2012.

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Accounting Basics: The union contract provides for wage rate to be 11 per hour

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Accounting Basics: The union contract provides for wage rate to be 11 per hour

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