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 arter 3rd Quater 4th Quarter Unilts to be produced 9,600 7,500 7,800 10,100 Each unit requires 0 65 direct labor-hours, and direct laborers are paid $10.00 per hour. Required: 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 tine per unit (hours)" answers to 2 decimal places.) Rordan Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter ear Required production in units Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost 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 6,000 hours of work each ter. If the number of required direct labor-hours is less than this number, the workers are paid for quart 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.) Rordan Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Ye Total direct labor-hours needed Regular hours paid Overtime hours paid Wages for regular hours Overtime wages Total direct labor cost

Explanation / Answer

Q1 Q2 Q3 Q4 Year Required Production 9600 7500 7800 10100 35000 DL required per unit 0.65 0.65 0.65 0.65 0.65 Total DLH needed 6240 4875 5070 6565 22750 DL Cost per hour 10 10 10 10 10 Total DL Cost 62400 48750 50700 65650 227500 Total DLH needed 6240 4875 5070 6565 22750 Regular hours Paid 6000 6000 6000 6000 24000 Overtime hours paid 240 0 0 565 805 Wages for regular 10 10 10 10 10 Wages for overtime 15 15 15 15 15 Total DL Cost 63600 60000 60000 68475 252075

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