1. **Stating the problem:** We are given the direct work hours and wage rates for two departments (A and B) for week 1 in PT. ADO's 2014 budget. We want to understand how the total labor cost is calculated from the hours and wage rates. 2. **Formula used:** The total labor cost for each department is calculated by multiplying the hours worked by the wage rate per hour: $$\text{Total Cost} = \text{Hours} \times \text{Wage Rate}$$ 3. **Given data for week 1:** - Department A: Hours = 1,128, Wage rate = 500 - Department B: Hours = 705, Wage rate = 700 4. **Calculate total cost for Department A:** $$1,128 \times 500 = 564,000$$ 5. **Calculate total cost for Department B:** $$705 \times 700 = 493,500$$ 6. **Calculate total labor cost for both departments:** $$564,000 + 493,500 = 1,057,500$$ 7. **Explanation:** The total labor cost is the sum of the costs for each department, which is the product of hours worked and wage rate. This method applies to each week and department to budget labor costs accurately. **Final answer:** The total labor cost for week 1 is 1,057,500.