Direct Labor Budget
Paige Metals Company has two departments—Cutting and Grinding—and manufactures three products. Budgeted unit production for the coming year is 21,000 of Product T, 36,000 of Product M, and 30,000 of Product B. The company is currently analyzing direct labor hour requirements for the coming year. Data for each department are as follows:
| Estimated hours per unit | Cutting | Grinding |
| Product T | 1.1 | 0.5 |
| Product M | 0.6 | 2.9 |
| Product B | 3.2 | 1.0 |
| Hourly labor rate | $9 | $7 |
Prepare a direct labor budget for the coming year that shows the budgeted direct labor costs for each department and for the company as a whole.
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