Question

Chapter 8 Application 14 The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year. 4th Quarter 1st Quarter 12,000 2nd Quarter 10, 3rd Quarter 13,000 Units to be produced Each unit requires 0.2 direct labor-hours and direct laborers are paid $12.00 per hour. In addition, the variable manufacturing overhead rate is $175 per direct labor-hour. The fixed manufacturing overhead is $86,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $23,000 per quarter. Required: 1. Calculate the company's total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced 283. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the the upcoming fiscal year and for the year as a whole. ce Complete this question by entering your answers in the tabs below. Reg1 Reg 2 and 3 Calculate the company's total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total direct labor COS Reg 2 and 3 >

Answer 1

	1st	2nd	3rd	4th	Year
Units to be produced	12000	10000	13000	14000	49000
Labor hours per unit	0.2	0.2	0.2	0.2	0.2
Labor hours required	2400	2000	2600	2800	9800
Rate per hour	12	12	12	12	12
Total direct labor cost	28,800	24,000	31,200	33,600	117,600
2
	1st	2nd	3rd	4th	Year
Labor hours required	2400	2000	2600	2800	9800
Variable manufacturing rate per hour	1.75	1.75	1.75	1.75	1.75
Total variable manufacturing overhead	4,200	3,500	4,550	4,900	17,150
Fixed overhead	86,000	86,000	86,000	86,000	344,000
Total manufacturing cost	90,200	89,500	90,550	90,900	361,150
Depreciation is a non cash cost
	1st	2nd	3rd	4th	Year
Cash disbursements	67,200	66,500	67,550	67,900	269,150