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 11,000 2nd Quarter 10,000 3rd Quarter 12,000 4th Quarter 13,000 Units to be produced Each unit requires 0.30 direct labor-hours and direct laborers are paid $12.50 per hour. In addition, the variable manufacturing overhead rate is $2.05 per direct labor-hour. The fixed manufacturing overhead is $90,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $30,000 per quarter. Required: 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. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced. 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Calculate the company's total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Show less 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year ! Total direct labor cost Reg 1 Reg 2 and 3 >

Answer 1

Hruska Corporation
Direct Labor Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Required production in units	11000	10000	12000	13000	46000
Direct labor time per unit (hours)	0.30	0.30	0.30	0.30	0.30
Total direct labor­hours needed	3300	3000	3600	3900	13800
Direct labor cost per hour	12.50	12.50	12.50	12.50	12.50
Total direct labor cost	41250	37500	45000	48750	172500
2&3
Hruska Corporation
Manufacturing Overhead Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Variable manufacturing overhead	6765	6150	7380	7995	28290
Fixed manufacturing overhead	90000	90000	90000	90000	360000
Total manufacturing overhead	96765	96150	97380	97995	388290
Less depreciation	30000	30000	30000	30000	120000
Cash disbursements for manufacturing overhead	66765	66150	67380	67995	268290