he production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming f

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he production manager of Rordan Corporation has submitted the
following quarterly production forecast for the upcoming fiscal
year:
Each unit requires 0.35 direct labor-hours, and direct laborers
are paid $14.00 per hour.
Required:
1. Prepare the company’s direct labor budget for the upcoming
fiscal year. Assume that the direct labor workforce is adjusted
each quarter to match the number of hours required to produce the
forecasted number of units produced.
2. Prepare the company’s direct labor budget for the upcoming
fiscal year, assuming that the direct labor workforce is not
adjusted each quarter. Instead, assume that the company’s direct
labor workforce consists of permanent employees who are guaranteed
to be paid for at least 3,500 hours of work each quarter. If the
number of required direct labor-hours is less than this number, the
workers are paid for 3,500 hours anyway. Any hours worked in excess
of 3,500 hours in a quarter are paid at the rate of 1.5 times the
normal hourly rate for direct labor.