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Tcecarenko [31]
3 years ago
13

Each unit requires 0.25 direct labor-hours and direct laborers are paid $14.00 per hour. In addition, the variable manufacturing

overhead rate is $1.60 per direct labor-hour. The fixed manufacturing overhead is $95,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $35,000 per quarter. Required: 1. Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Round "Direct labor time per unit (hours)" and "Direct labor cost per hour" answers to 2 decimal places.)
Business
1 answer:
pshichka [43]3 years ago
7 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Each unit requires 0.25 direct labor-hours and direct laborers are paid $14.00 per hour. In addition, the variable manufacturing overhead rate is $1.60 per direct labor-hour. The fixed manufacturing overhead is $95,000 per quarter.

Direct labor per unit= 0.25*14= $3.5

Direct labor equation= 3.5*x

x= units produced

For example:

100 units

Direct labor= 3.5*100= $350

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The preparation of the Trial Balance of Ceco Co. from the ledger accounts as of June 20, 2020, is as follows:

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<h3>Trial Balance</h3>

As of June 30, 2020

Accounts                                      Debit            Credit

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A trial balance is a list of the ledger accounts balances at a particular date of the financial period.

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Thus, the above trial balance shows the ledger accounts balances of Ceco Co as of June 30, 2020.

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