Question

4. value: 1.50 points 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 11,200 Units to be produced 8,500 8,600 10,900 Each unit requires 0.55 direct labor-hours, and direct laborers are paid $16.00 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 "Direct labor time per unit (hours)" answers to 2 decimal places.) Rordan Corporation Direct Labor Budget 3rd Quarter 4th Quarter 1st Quarter 2nd 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 2. Complete the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 5,900 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 5,900 hours anyway. Any hours worked in excess of 5,900 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. (Input all amounts as positive values.) Rordan Corporation Direct Labor Budget 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter Year Total direct labor-hours needed Regular hours paid Overtime hours paid 0 0 0 $ Wages for regular hours 0 Overtime wages O$ 0$ 0$ $ $ 0 0 Total direct labor cost

Answer 1

1) Direct labor budget

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Required production in units	11200	8500	8600	10900	39200
Direct labor time per unit	0.55	0.55	0.55	0.55	0.55
Total direct labor hour needed	6160	4675	4730	5995	21560
Direct labor cost per hour	16	16	16	16	16
Total direct labor cost	98560	74800	75680	95920	344960

2) Direct labor budget

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Total direct labor hour needed	6160	4675	4730	5995	21560
Regular hours paid	5900	5900	5900	5900	23600
Overtime hours paid	260			95	355
Wages for regular hours	94400	94400	94400	94400	377600
Overtime wages	6240			2280	8520
Total direct labor cost	100640	94400	94400	96680	386120