The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 8,800 7,000 7,400 8,300 Each unit requires 0.55 direct labor-hours, and direct laborers are paid $10.00 per hour. Required: 1. Prepare the company’s direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. 2. Prepare 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 4,500 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 4,500 hours anyway. Any hours worked in excess of 4,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.
Direct labor budget
1st quarter | 2nd quarter | 3rd quarter | 4th quarter | Year | |
Production Unit | 8800 | 7000 | 7400 | 8300 | 31500 |
Labor hour per unit | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 |
Production labor hour | 4840 | 3850 | 4070 | 4565 | 17325 |
Rate per hour | 10 | 10 | 10 | 10 | 10 |
Direct labor cost | 48400 | 38500 | 40700 | 45650 | 173250 |
Direct labor budget
1st quarter | 2nd quarter | 3rd quarter | 4th quarter | Year | |
Production labor hour | 4840 | 3850 | 4070 | 4565 | 17325 |
Regular hours paid | 4500 | 4500 | 4500 | 4500 | 18000 |
Overtime hours paid | 340 | 65 | 405 | ||
Wages for regular hours | 45000 | 45000 | 45000 | 45000 | 180000 |
Overtime wages | 5100 | 0 | 0 | 975 | 6075 |
Direct labor cost | 50100 | 45000 | 45000 | 45975 | 186075 |
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year. Units to be produced 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 9,000 7,000 7,500 8,400 Each unit requires 0.45 direct labor-hours, and direct laborers are paid $10.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: Units to be produced 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 8,400 6,500 7,200 8,100 Each unit requires 0.65 direct labor-hours, and direct laborers are paid $12.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 9,000 2nd Quarter 7,000 3rd Quarter 7,500 4th Quarter 8,400 Units to be produced Each unit requires 0.45 direct labor-hours, and direct laborers are paid $10.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 9,400 2nd Quarter 7,000 3rd Quarter 7,700 4th Quarter 10,000 Units to be produced Each unit requires 0.25 direct labor-hours, and direct laborers are paid $10.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year Units to be produced 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 8,000 6,500 7.000 7.500 Each unit requires 0.35 direct labor-hours, and direct laborers are paid $12.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 8,800 7,000 7,400 8,300 Units to be produced Each unit requires 0.55 direct labor-hours, and direct laborers are paid $10.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 9,400 Units to be produced 7,000 7,700 10,000 Each unit requires 0.25 direct labor-hours, and direct laborers are paid $10.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: Units to be produced 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 12,000 9,000 7,200 11,300 Each unit requires 0.65 direct labor-hours, and direct laborers are paid $20.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: Units to be produced 1st Quarter 8, 200 2nd Quarter 6,500 3rd Quarter 7,100 4th Quarter 8,000 Each unit requires 0.25 direct labor-hours, and direct laborers are paid $12.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: Units to be produced int Quarter 2nd Quarter 3rd Quarter 4th Quarter 10.800 8,500 7,100 11,200 Each unit requires 0.25 direct labor-hours, and direct laborers are paid $20.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce...