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Rodriquez Budget

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Rodriguez, Inc., is preparing its direct labor budget for 2014 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 1.5 hours of direct labor.

Prepare a direct labor budget for 2014. Wage rates are expected to be $16 for the first
2 quarters and $18 for quarters 3 and 4.

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