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 1st Quarter 2nd Quarter 3rd Quarter 10,500 9,500 11,500 4th Quarter 12,500 Each unit requires 0.30 direct labor-hours and direct laborers are paid $12.50 per hour. In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed manufacturing overhead is $85,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $25,000 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. 283. 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. Complete this question by entering your answers in the tabs below. Reg 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 Req1 Req 2 and 3 >

Answer 1

Answer
LABOUR COST BUDGETS
	Q-1	Q-2	Q-3	Q-4	YEAR
Units to be produced	10,500	9,500	11,500	12,500	44,000
Labour required per unit	0.3	0.3	0.3	0.3	0.3
Labour hours	3150	2850	3450	3750	13200
Labuor Rate per hour	12.5	12.5	12.5	12.5	12.5
Budgeted Labour cost in $	$        39,375	$        35,625	$        43,125	$        46,875	$     1,65,000
MANUFACTURING OVERHEADS BUDGET
	Q-1	Q-2	Q-3	Q-4	YEAR
Variable Mnaufacturing OH	$        18,900	$        17,100	$        20,700	$        22,500	$        79,200
Fixed Manufacturing OH	$        85,000	$        85,000	$        85,000	$        85,000	$     3,40,000
Total Manufacturing OH	$     1,03,900	$     1,02,100	$     1,05,700	$     1,07,500	$     4,19,200
Less: Depreciation	$        25,000	$        25,000	$        25,000	$        25,000	$     1,00,000
Cash Disbursals for manufacturing OH	$        78,900	$        77,100	$        80,700	$        82,500	$     3,19,200