Question

1 Normal 1 No Spac... Heading 1 Heading 2 Title Styles Paragraph The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st 2nd Quarter 10,000 Quarter 12,000 3rd Quarter 13,000 4th Quarter 14,000 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 $1.75 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. (Ctrl)

Answer 1

1. Direct labor budget

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Units to be produced	12,000	10,000	13,000	14,000	49,000
Direct labor hours per unit	0.2	0.2	0.2	0.2	0.2
Direct labor rate per hour	$12	$12	$12	$12	$12
Estimated direct labor cost	$28,800	$24,000	$31,200	$33,600	$117,600

2. Manufacturing overhead budget

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Units to be produced	12,000	10,000	13,000	14,000	49,000
Direct labor hours per unit	0.2	0.2	0.2	0.2	0.2
Variable manufacturing overhead rate per direct labor hour	$1.75	$1.75	$1.75	$1.75	$1.75
Variable manufacturing overhead	$4,200	$3,500	$4,550	$4,900	$17,150
Fixed manufacturing overhead	$86,000	$86,000	$86,000	$86,000	$344,000
Total manufacturing overhead	$90,200	$89,500	$90,550	$90,900	$361,150
Non cash fixed manufacturing overhead	$23,000	$23,000	$23,000	$23,000	$92,000
Cash disbursements for manufacturing overhead	$67,200	$66,500	$67,550	$67,900	$269,150