The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...
Free
90.2K
Verified Solution
Link Copied!
Question
Accounting
The production manager of Rordan Corporation has submitted thefollowing quarterly production forecast for the upcoming fiscalyear:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,800 8,500 7,100 11,200
Each unit requires 0.25 direct labor-hours, and direct laborersare paid $20.00 per hour.
Required:
1. Prepare the company’s direct labor budget for the upcomingfiscal year. Assume that the direct labor workforce is adjustedeach quarter to match the number of hours required to produce theforecasted number of units produced.
2. Prepare the company’s direct labor budget for the upcomingfiscal year, assuming that the direct labor workforce is notadjusted each quarter. Instead, assume that the company’s directlabor workforce consists of permanent employees who are guaranteedto be paid for at least 2,500 hours of work each quarter. If thenumber of required direct labor-hours is less than this number, theworkers are paid for 2,500 hours anyway. Any hours worked in excessof 2,500 hours in a quarter are paid at the rate of 1.5 times thenormal hourly rate for direct labor.
The production manager of Rordan Corporation has submitted thefollowing quarterly production forecast for the upcoming fiscalyear:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 10,800 | 8,500 | 7,100 | 11,200 |
Each unit requires 0.25 direct labor-hours, and direct laborersare paid $20.00 per hour.
Required:
1. Prepare the company’s direct labor budget for the upcomingfiscal year. Assume that the direct labor workforce is adjustedeach quarter to match the number of hours required to produce theforecasted number of units produced.
2. Prepare the company’s direct labor budget for the upcomingfiscal year, assuming that the direct labor workforce is notadjusted each quarter. Instead, assume that the company’s directlabor workforce consists of permanent employees who are guaranteedto be paid for at least 2,500 hours of work each quarter. If thenumber of required direct labor-hours is less than this number, theworkers are paid for 2,500 hours anyway. Any hours worked in excessof 2,500 hours in a quarter are paid at the rate of 1.5 times thenormal hourly rate for direct labor.
Answer & Explanation Solved by verified expert
| 1 | |||||
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year | |
| Required production in units | 10800 | 8500 | 7100 | 11200 | 37600 |
| Direct labor time per unit (hours) | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 |
| Total direct labor-hours needed | 2700 | 2125 | 1775 | 2800 | 9400 |
| Direct labor cost per hour | 20.00 | 20.00 | 20.00 | 20.00 | 20.00 |
| Total direct labor cost | 54000 | 42500 | 35500 | 56000 | 188000 |
| 2 | |||||
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year | |
| Required production in units | 10800 | 8500 | 7100 | 11200 | 37600 |
| Direct labor time per unit (hours) | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 |
| Total direct labor-hours needed | 2700 | 2125 | 1775 | 2800 | 9400 |
| Regular hours paid | 2500 | 2500 | 2500 | 2500 | 10000 |
| Overtime hours paid | 200 | 0 | 0 | 300 | 500 |
| Wages for regular hours | 50000 | 50000 | 50000 | 50000 | 200000 |
| Overtime wages | 6000 | 0 | 0 | 9000 | 15000 |
| Total direct labor cost | 56000 | 50000 | 50000 | 59000 | 215000 |
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.