Question

Exercise 8-15 Direct Labor and Manufacturing Overhead Budgets [LO8-5, LO8-6] 16.66 points The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 10,600 Units to be produced 2nd Quarter 9,600 3rd Quarter 11,600 4th Quarter 12,600 eBook Each unit requires 0.30 direct labor-hours and direct laborers are paid $12.50 per hour. Print In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $86,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $26,000 per quarter. References Required: 1. Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. 2&3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 and 3 Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total direct labor cost Reg 1 Req 2 and 3 >

Answer 1

1) Direct labor budget

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Budgeted unit	10600	9600	11600	12600	44400
Labor hour per unit	0.30	0.30	0.30	0.30	0.30
Budgeted labor hour	3180	2880	3480	3780	13320
rate per hour	12.50	12.50	12.50	12.50	12.50
Budgeted labor cost	39750	36000	43500	47250	166500

2) Manufacturing overhead budget

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Budgeted unit	10600	9600	11600	12600	44400
Variable manufacturing overhead per hour	1.5	1.5	1.5	1.5	1.5
Variable manufacturing overhead	15900	14400	17400	18900	66600
Fixed manufacturing overhead	86000	86000	86000	86000	344000
Total manufacturing overhead	101900	100400	103400	104900	410600
Less: Depreciation	-26000	-26000	-26000	-26000	-104000
Cash disbursement on manufacturing overhead	75900	74400	77400	78900	306600