85% 1:46 The production manager of Rordan Corporation has submitted the followin

Question

85% 1:46 The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Each unit requires 0.25 direct labor-hours, and direct laborers are paid $10 per hour Required: 1. 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.) 2. 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

Solution:

1.

2.

1st 2nd 3rd 4th Year Units to be produced 9400 7000 7700 10000 34100 Direct labor time per unit (hours) 0.25 0.25 0.25 0.25 0.25 Total direct labor hours needed 2350 1750 1925 2500 8525 Direct labor cost per hour 10 10 10 10 10 Total direct labor cost 23500 17500 19250 25000 85250

Related Questions

Navigate

• Browse (All)
• Browse 8
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.