Question

e Production Department of Hrus produced by quarter for the upcoming fiscal year: orporation has submitted the following forecast of units to be 1st Quarter 10,700 2nd Quarter 9,700 3rd Quarter 11,700 4th Quarter 12,700 Units to be produced Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour. In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed manufacturing overhead is $87,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $27,000 per quarter Required 1. Prepare 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)" and "Direct labor cost per hour" answers to 2 decimal places.) Hruska 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 2. Prepare the company's manufacturing overhead budget. Hruska Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing 0 0 0 0 0 0 overhead

Answer 1

Labour budget :

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Production units	10700	9700	11700	12700	44800
Labour hour per unit	0.25	0.25	0.25	0.25	0.25
Labour hour for proudction	2675	2425	2925	3175	11200
Rate per hour	13	13	13	13	13
Direct labour cost	34775	31525	38025	41275	1456000

Overhead budget :

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Direc labour hour for production	2675	2425	2925	3175	11200
Variable manufacturing overhead per unit	1.8	1.8	1.8	1.8	1.8
Variable manufacturing overhead	4815	4365	5265	5715	20160
Fixed manufacturing overhead	87000	87000	87000	87000	348000
Total manufacturing overhead	91815	91365	92265	92715	368160
Less: Depreciation	27000	27000	27000	27000	108000
Cash disbursements for manufacturing overhead	64815	64365	65265	65715	260160