Question

The Production Department of Hruska 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 10,100 9,100 11,100 12,100 Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour. In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed manufacturing overhead is $81,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $21,000 per quarter.

1.Calculate the company’s total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.)

	1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total direct labor cost

2&3. Calculate the company’s total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.

1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Total manufacturing overhead
Cash disbursements for manufacturing overhead

Answer 1

Required production in units Direct la bor time per unit (hours) Total direct labor hours needed Direct labor cost per hour Total direct labor cost HRUSKA COMPANY Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 101 00 9100 11100 12100 0.25 0.25 0.25 0.25 2525 2275 2775 3025 13.00 13.00 13.00 13.00 32825 29575 36075 39325 | Year 42400 0.25 10600 13.00 137800 HRUSKA COMPANY Manufacturing Overhead Budget | 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Direct la bor hours needed 2525 2275 2775 3025 Variable manufacturing overhead rate per hour 1.80 1.80 1.80 1.80 Variable manufacturing overhead 4545 4095 4995 5445 Fixed manufacturing overhead 81000 81000 81000 81000 Total manufacturing overhead 85545 85095 85995 86445 Less: Depreciation 21000 21000 21000 21000 Cash disbursements for manufacturing over head 64545 64095 64995 65445 Year 10600 1.80 19080 324000 343080 84000 259080