1. **Stating the problem:** We have production data for 4 time periods (tw) with units produced (in thousands), labor hours per unit for two departments (A and B), and average wage rates per hour for each department. We need to calculate: - Direct labor hours budget by time, department, and product. - Direct labor cost budget by time, department, and product. 2. **Given data:** - Production (000 units): tw1=470, tw2=480, tw3=600, tw4=600 - Labor hours per unit: Dept A = 2.4 hours, Dept B = 1.5 hours - Wage rate per hour: Dept A = 500, Dept B = 700 3. **Formulas:** - Direct labor hours = Production units \( \times \) Labor hours per unit - Direct labor cost = Direct labor hours \( \times \) Wage rate per hour 4. **Calculations for each time period and department:** **Time period 1 (tw=1, production=470):** - Dept A hours = $470 \times 2.4 = 1128$ hours - Dept B hours = $470 \times 1.5 = 705$ hours - Dept A cost = $1128 \times 500 = 564000$ - Dept B cost = $705 \times 700 = 493500$ **Time period 2 (tw=2, production=480):** - Dept A hours = $480 \times 2.4 = 1152$ hours - Dept B hours = $480 \times 1.5 = 720$ hours - Dept A cost = $1152 \times 500 = 576000$ - Dept B cost = $720 \times 700 = 504000$ **Time period 3 (tw=3, production=600):** - Dept A hours = $600 \times 2.4 = 1440$ hours - Dept B hours = $600 \times 1.5 = 900$ hours - Dept A cost = $1440 \times 500 = 720000$ - Dept B cost = $900 \times 700 = 630000$ **Time period 4 (tw=4, production=600):** - Dept A hours = $600 \times 2.4 = 1440$ hours - Dept B hours = $600 \times 1.5 = 900$ hours - Dept A cost = $1440 \times 500 = 720000$ - Dept B cost = $900 \times 700 = 630000$ 5. **Summary tables:** | Time | Dept | Hours | Cost | |-------|-------|--------|---------| | 1 | A | 1128 | 564000 | | 1 | B | 705 | 493500 | | 2 | A | 1152 | 576000 | | 2 | B | 720 | 504000 | | 3 | A | 1440 | 720000 | | 3 | B | 900 | 630000 | | 4 | A | 1440 | 720000 | | 4 | B | 900 | 630000 | This completes the direct labor hours and cost budgets by time, department, and product.