s) The production department of Tadris Corporation has submited the following fo

ID: 2591299 • Letter: S

Question

s) The production department of Tadris Corporation has submited the following forecast of units to be produced by quarter for the upcoming fiscal year. 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 12.000 11.500 11.000 10500 Units to be produced... Each unit requires 0.25 direct labor-hours at $18.00 per hour. Required: Prepare a ....1 direct labor budget for the upcoming fiscal year, assuming that t he direct labor work force is r to match the number of hours required to produce the budgeted production. adjusted each quarte

Explanation / Answer

Preparation of Direct Labor Budget for upcoming fiscal year:

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Units to be produced (A)

12000

11500

11000

10500

Direct labor hour per unit (B)

0.25

Total direct labor hours required (A*B)

3000

2875

2750

2625

Direct labor cost per hour

Total direct labor cost

3000*18 = 54000

2875*18 = 51750

2750*18 = 49500

2625*18 = 47250