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OLga [1]
2 years ago
11

The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upc

oming fiscal year:
Each unit requires 0.35 direct labor-hours, and direct laborers are paid 12.00 per hour.
(b) Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,600 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 2.600 hours anyway. Any hours worked in excess of 2,600 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.
Business
1 answer:
ANTONII [103]2 years ago
3 0

The rate of 1.5 times the normal hourly rate for direct Labor budget is 34800 31200 31200 31650 128850.

                  Quarter  

Particulars 1    2               3                4                Total

Units     8000     6500            7000          7500  

Direct labor hour 0.35   0.35        0.35                0.35

to produce 1 unit    

Total direct labor 2800    2275    2450       2625  

Rate per labor hour 12  12      12                     12  

Total labour cost 33600 27300 29400 31500 121800.

Labor budget

 Quarter  

Particulars 1     2           3                   4              Total

Units     8000 6500 7000          7500  

Direct labor hour to 0.35    0.35         0.35        0.35

produce 1 unit

Total direct labor 2800 2275 2450 2625  

The excess over        2600                           25  

Payment for

2600 hours 12 31200     31200    31200    31200  

Payment for extra hours          

200*12*1.5           3600        

25*12*1.5                                         450  

Total Labor budget 34800 31200 31200 31650 128850.

Learn more about the Labor budget at

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<h3>What do you mean by Realistic conflict theory ?</h3>

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