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: 1st Quarter 11,400 2nd Quarter 8,500 3rd Quarter 8,700 4th Quarter 11,000 Units to be produced Each unit requires 0.45 direct labor-hours, and direct laborers are paid $20.00 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.) Rordan Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterYear 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 s 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 4,600 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 4,600 hours anyway. Any hours worked in excess of 4,600 hours in a quarter are pald 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 Year Total direct labor-hours needed Regular hours paid Overtime hours paid Wages for regular hours Overtime wages Total direct labor cost

Explanation / Answer

1 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Required production in units 11400 8500 8700 11000 39600 Direct labor time per unit (hours) 0.45 0.45 0.45 0.45 0.45 Total direct labor-hours needed 5130 3825 3915 4950 17820 Direct labor cost per hour 20 20 20 20 20 Total direct labor cost 102600 76500 78300 99000 356400 2 Total direct labor-hours needed 5130 3825 3915 4950 17820 Regular hours paid 4600 4600 4600 4600 18400 Overtime hours paid 530 0 0 350 880 Wages for regular hours 92000 92000 92000 92000 368000 Overtime wages 15900 0 0 10500 26400 Total direct labor cost 107900 92000 92000 102500 394400

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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