Question

The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Units to be produced	8,000	6,500	7,000	7,500

Each unit requires 0.35 direct labor-hours, and direct laborers are paid $12.00 per hour.

Required:
1.	Complete the company

Answer 1

1.

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Required production in unit	8000	6500	7000	7500	29000
Direct labour time per unit(hours)	0.35	0.35	0.35	0.35	0.35
Total direct labour hours needed	2800	2275	2450	2625	10150
Direct Labour cost per hour	12	12	12	12	12
Total direct labour cost	33600	27300	29400	31500	121800

2.

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Total Direct labour hours needed	2800	2275	2450	2625	10150
Regular hours paid	2600	2600	2600	2600	2600
Overtime hours paid	200	0	0	25	7550
Wages for regular hours(12*hours)	31200	31200	31200	31200	124800
Overtime wages(12*1.5*hours)	3600	0	0	450	4050
Total direct labour cost	34800	31200	31200	31650	128850