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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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