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:

Complete 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)" answers to 2 decimal places.)

Complete 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 2,200 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 2,200 hours anyway. Any hours worked in excess of 2,200 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. (Input all amounts as positive values.)

Explanation / Answer

Direct Labor Budget Ans 1 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total   Units to be produced 9,400 7,000 7,700 10,000 34,100 Required Direct Labour Hour per unit 0.25 0.25 0.25 0.25 0.25 Total Direct Labour Hours required for production 2350 1750 1925 2500 8525 Cost of per direct labour Hour $10 $10 $10 $10 $10 Total Direct Labour Cost $23,500 $17,500 $19,250 $25,000 $85,250 Ans 2 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total   Units to be produced 9,400 7,000 7,700 10,000 34,100 Required Direct Labour Hour per unit 0.25 0.25 0.25 0.25 0.25 Total Direct Labour Hours required for production 2350 1750 1925 2500 8525 Total Direct Labor Cost $24,250 $22,000 $22,000 $26,500 $94,750 Note 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Total Direct Labor Hours Minimum hour to be paid   A 2200 2200 2200 2200 More than minimum hours is paid 1.5 times B 150 300 Cost per direct Labor $10*A $22,000 $22,000 $22,000 $22,000 Cost per direct Labor $10*1.5*B 2250 4500 Total direct labor Cost $24,250 $22,000 $22,000 $26,500 $94,750

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