Question

The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year Units to be produced 10,000 9,000 11,000 12,000 Each unit requires 0.20 direct labor-hours and direct laborers are paid $12.00 per hout In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $80,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $20,000 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 2&3. 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. Complete this question by entering your answers in the tabs below 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 1st Quarter 2nd Quarter 3rd Quarter4th Quarter Year Total direct labor cost

Answer 1

1
	Hruska Corporation
	Direct Labor Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Required production in units	10000	9000	11000	12000	42000
Direct labor time per unit (hours)	0.2	0.2	0.2	0.2	0.2
Total direct labor­hours needed	2000	1800	2200	2400	8400
Direct labor cost per hour	12	12	12	12	12
Total direct labor cost	24000	21600	26400	28800	100800
2
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Variable manufacturing overhead	3000	2700	3300	3600	12600
Fixed manufacturing overhead	80000	80000	80000	80000	320000
Total manufacturing overhead	83000	82700	83300	83600	332600
Less depreciation	20000	20000	20000	20000	80000
Cash disbursements for manufacturing overhead	63000	62700	63300	63600	252600