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The Direct Labour Budget

Learn more about the direct labour budget.

The Direct Labour Budget

  • At Royal, each unit of product requires 0.05 hours (3 minutes) of direct labour.
  • The Company has a “no layoff” policy so all employees will be paid for 40 hours of work each week.
  • Workers are paid at the rate of $10 per hour regardless of the hours worked.
  • For the next three months, the direct labour workforce will be paid for a minimum of 1,500 hours per month.


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