The production manager of Rordan Corporation has submitted the following forecas

Question

The production manager of Rordan 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 5,550 4,100 4,300 5,050

Each unit requires 0.3 direct labor-hours, and direct laborers are paid $11 per hour.


Requirement 1:
Compute 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. (Omit the "$" sign in your response.)

Total direct
labor cost
1st Quarter $
2nd Quarter $
3rd Quarter $
4th Quarter $
Year $

Explanation / Answer

1st Quarter = 5,550*0.3*11 = $18,315 2nd Quarter = 4,100*0.3*11 = $13,530 3rd Quarter = 4,300*0.3*11 = $14,190 4th Quarter = 5,050*0.3*11 = $16,665 Total for the year = $62,700

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