Question

The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 9,500 Units to be produced 7,600 9,200 7,000 Each unit requires 0.35 direct labor-hours, and direct laborers are paid $10.00 per hour. Required: 1. Complete the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Round "Direc labor time per unit (hours)" answers to 2 decimal places.) Rordan Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Required production in units Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost

Answer 1

1.

Rordan Corporation Direct Labor Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Required production in units	9,200	7,000	7,600	9,500	33,300
Direct labor time per unit (hours)	0.35	0.35	0.35	0.35	0.35
Total direct labor hours needed	3,220	2,450	2,660	3,325	11,655
Direct labor cost per hour	$10	$10	$10	$10	$10
Total direct labor cost	$32,200	$24,500	$26,600	$33,250	$116,550

2.

Rordan Corporation Direct Labor Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Total direct labor hours needed	3,220	2,450	2,660	3,325
Regular hours paid	3,000	3,000	3,000	3,000
Overtime hours paid	220	0	0	325
Wages for regular hours (3,000*$10)	$30,000	$30,000	$30,000	$30,000	$120,000
Overtime wages $15 ($10*1.5)	3,300 (220*$15)	0	0	4,875 (325*$15)	8,175
Total direct labor cost	$33,300	$30,000	$30,000	$34,875	$128,175