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:

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 5,000 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 5,000 hours anyway. Any hours worked in excess of 5,000 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:

Explanation / Answer

SOLUTION

(A)

Rordan Corporation

Direct Labor Budget

(B)

Rordan Corporation

Direct Labor Budget

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Regular production in units 10,000 7,500 8,000 10,300 35,800 Direct labor time per unit (hours) 0.55 0.55 0.55 0.55 0.55 Total direct labor-hours needed 5,500 4,125 4,400 5,665 19,690 Direct labor cost per hour $14 $14 $14 $14 $14 Total direct labor cost $77,000 $57,750 $61,600 $79,310 $275,660

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