Bonuses, gain-sharing, competitive pricing – these ideas were attractive and simple enough, but they made negotiating a contract much more challenging for Eric Clark, director of the Central Region for Appshop, Inc. Clark was in the throes of settling terms and deciding whether and how to do the OS-7 project, a major implementation of Oracle software in all seven international locations of a large multinational company (the ``client’’). Appshop had recently completed a successful implementation of Oracle financials in the client’s Dallas headquarters. Appshop had met or exceeded all stated objectives, and would continue to support corporate Oracle applications for the client.

The production manager of rordan corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st quarter 2nd quarter 3rd quarter 4th quarter units to be produced 10,800 8,500 7,100 11,200 each unit requires 0.25 direct labor-hours, and direct laborers are paid $20.00 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 2,500 hours of work each quarter. if the number of required direct labor-hours is less than this number, the workers are paid for 2,500 hours anyway. any hours worked in excess of 2,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.