The production manager of Rordan Corporation has submitted the following quarter

Question

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,400 8,000 8,200 10,500 Each unit requires 0.35 direct labor-hours, and direct laborers are paid $14.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced 2. Prepare 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 3,500 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 3,500 hours anyway. Any hours worked in excess of 3,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor Complete this question by entering your answers in the tabs below. Required 1Required 2 Prepare the company's direct labor budget for the upcoming fiscal year. Assume 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

Explanation / Answer

Prepare direct labour budget :

b) Prepare direct labour budget :

1st quarter 2nd quarter 3rd quarter 4th quarter Year Production unit 10400 8000 8200 10500 37100 Labour hour per unit 0.35 0.35 0.35 0.35 0.35 Labour hour for production 3640 2800 2870 3675 12985 Rate per hour 14 14 14 14 14 Direct labour cost 50960 39200 40180 51450 181790

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