Roehler Industrial has estimated that production for the next five quarters will
ID: 2586123 • Letter: R
Question
Roehler Industrial has estimated that production for the next five quarters will be:
Prepare quarterly direct labor budgets for Roehler Industrial for 2017. It takes 3 hours of direct labor to produce each finished unit of product. Direct labor costs are $20 per hour. Each employee can work 470 hours per quarter. (Round answers to 0 decimal places, e.g. 125.)
Explanation / Answer
Answer: Direct labor budget
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Production units
45000 units
41000
49000
38000
Total direct labor hours @3 hr/unit
135000 hours
123000
147000
114000
Total direct labor cost @20/hour
$2700000
$2460000
$2940000
$2280000
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Production units
45000 units
41000
49000
38000
Total direct labor hours @3 hr/unit
135000 hours
123000
147000
114000
Total direct labor cost @20/hour
$2700000
$2460000
$2940000
$2280000
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