Question

Req 1 Req 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 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. (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
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 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,200 9,200 11,200 12,200 Each unit requires 0.25 direct labor-hours and direct laborers are paid $11.00 per hour. In addition, the variable manufacturing overhead rate is $1.60 per direct labor-hour. The fixed manufacturing overhead is $82,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $22,000 per quarter. 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. 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. 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.

Answer 1

Answer-1)-

HRUSKA CORPORATION
TOTAL DIRECT LABOR COSTS
Particulars	First Quarter	Second Quarter	Third Quarter	First Quarter	Year
Direct labor costs	28050	25300	30800	33550	117700

Explanation-

HRUSKA CORPORATION
TOTAL DIRECT LABOR COSTS
Particulars	First Quarter	Second Quarter	Third Quarter	First Quarter	Year
Units to be produced (a)	10200	9200	11200	12200	42800
Each units requires hours (b)	0.25	0.25	0.25	0.25	0.25
Budgeted direct labor hours (c=a*b)	2550	2300	2800	3050	10700
Direct labor rate per hour (d)	$11.00	$11.00	$11.00	$11.00	$11.00
Direct labor costs (e=c*d) $	28050	25300	30800	33550	117700

2)-

HRUSKA CORPORATION
TOTAL DIRECT LABOR COSTS
Particulars	First Quarter	Second Quarter	Third Quarter	First Quarter	Year
Total manufacturing overhead $	86080	85680	86480	86880	345120

Explanation-

HRUSKA CORPORATION
Manufacturing Overhead budget
Particulars	First Quarter	Second Quarter	Third Quarter	First Quarter	Year
Units to be produced (a)	10200	9200	11200	12200	42800
Each units requires hours (b)	0.25	0.25	0.25	0.25	0.25
Budgeted direct labor hours (c=a*b)	2550	2300	2800	3050	10700
Variable manufacturing overhead rate per DLH (d)	$1.60	$1.60	$1.60	$1.60	$1.60
Variable manufacturing overhead (e=c*d) $	4080	3680	4480	4880	17120
Add:- Fixed manufacturing overhead $	82000	82000	82000	82000	328000
Total manufacturing overhead $	86080	85680	86480	86880	345120

3)-

HRUSKA CORPORATION
Manufacturing Overhead budget
Particulars	First Quarter	Second Quarter	Third Quarter	First Quarter	Year
Cash disbursements for manufacturing overhead $	64080	63680	64480	64880	257120

Explanation-

HRUSKA CORPORATION
Manufacturing Overhead budget
Particulars	First Quarter	Second Quarter	Third Quarter	First Quarter	Year
Units to be produced (a)	10200	9200	11200	12200	42800
Each units requires hours (b)	0.25	0.25	0.25	0.25	0.25
Budgeted direct labor hours (c=a*b)	2550	2300	2800	3050	10700
Variable manufacturing overhead rate per DLH (d)	$1.60	$1.60	$1.60	$1.60	$1.60
Variable manufacturing overhead (e=c*d) $	4080	3680	4480	4880	17120
Add:- Fixed manufacturing overhead $	82000	82000	82000	82000	328000
Total manufacturing overhead $	86080	85680	86480	86880	345120
Less:- Depreciation $	22000	22000	22000	22000	88000
Cash disbursements for manufacturing overhead $	64080	63680	64480	64880	257120