The Production Department of Hruska Corporation has submitted the following fore

Question

The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

     In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $86,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $26,000 per quarter.

Prepare 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)" and "Direct labor cost per hour" answers to 2 decimal places.)

     

     

The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

Explanation / Answer

1.Prepare the company’s direct labor budget for the upcoming fiscal year,

2) Prepare the company’s manufacturing overhead budget.

First quarter Second quarter Third quarter Fourth quarter Year Production units 10600 9600 11600 12600 44400 Labour hour per unit 0.30 0.30 0.30 0.30 0.30 Production hours 3180 2880 3480 3780 13320 Rate per hour 12.50 12.50 12.50 12.50 12.50 Direct labour cost 39750 36000 43500 47250 166500

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