The production manager of Rordan Corporation has submitted the following forecas
ID: 2483907 • Letter: T
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 6,000 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 6,000 hours anyway. Any hours worked in excess of 6,000 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.)
The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
Rordan 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 costExplanation / Answer
Answer 1. Rordan Corporation Direct Labor Budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Required production in units 8,600 6,500 7,300 8,200 30,600 Direct Labor time per unit (Hrs) 0.75 0.75 0.75 0.75 Total Direct labor-hours needed 6,450 4,875 5,475 6,150 22,950 Direct Labor cost per hour 12 12 12 12 Total Direct labor Cost 77,400 58,500 65,700 73,800 275,400 Answer 2. Rordan Corporation Direct Labor Budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Total Direct labor-hours needed 6,450 4,875 5,475 6,150 22,950 Regular hours Paid 6,000 6,000 6,000 6,000 24,000 Overtime Hrs Paid 450 - - 150 600 Wages for regular hours 72,000 72,000 72,000 72,000 288,000 Overtime Wages 8,100 - - 2,700 10,800 Total Direct Labor Cost 80,100 72,000 72,000 74,700 298,800
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