The production manager of Rordan Corporation has submitted the following forecas
ID: 2581503 • Letter: T
Question
The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year Units to be produced 10,600 8,500 7,000 11,100 Each unit requires 0.35 direct labor-hours, and direct laborers are paid $20 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 Quarter Year 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 pald for at least 3,000 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 3,000 hours anyway Any hours worked In excess of 3,000 hours in a quarter are paid at the rate of 15 0 Type here to searchExplanation / Answer
1)
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Required production in units
10600
8500
7000
11100
37200
Direct labor time per unit (hours)
0.35
0.35
0.35
0.35
0.35
Total direct labor hours needed
3710
2975
2450
3885
13020
Direct labor cost per hour
20
20
20
20
20
Total direct labor cost
74200
59500
49000
77700
260400
2)
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Total direct labor hours needed
3710
2975
2450
3885
13020
Regular hours paid
3000
3000
3000
3000
12000
Overtime hours paid
710
0
0
885
1595
Wages for regular hours
60000
60000
60000
60000
240000
Overtime wages
710*(20*1.5) = 710*30 = 21300
0
0
885*(20*1.5) = 885*30 = 26550
1595*(20*1.5) = 1595*30 = 47850
Total direct labor cost
81300
60000
60000
86550
287850
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Required production in units
10600
8500
7000
11100
37200
Direct labor time per unit (hours)
0.35
0.35
0.35
0.35
0.35
Total direct labor hours needed
3710
2975
2450
3885
13020
Direct labor cost per hour
20
20
20
20
20
Total direct labor cost
74200
59500
49000
77700
260400
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