Answer:
Please refer explanation
Explanation:
1. Total estimated direct labour cost : No. of units produced x number of labour hours required x labour rate per hour
1st Quarter = 12000 units x 0.2 x 12 = $28,800
2nd Quarter = 10000 units x 0.2 x 12 = $24,000
3rd Quarter = 13000 units x 0.2 x 12 = $31,200
4th Quarter = 14000 units x 0.2 x 12 = $33,600
Total Direct Labour Cost for fiscal year = $28800 + $24000 + $31200 + $33600 = $117600
2. Total estimated manufacturing overhead cost : (Number of units x labor hours required x hourly manufacturing overhead rate) + fixed manufacturing overhead
1st Quarter = (12000 units x 0.2 x 1.75) + $86000 = $90,200
2nd Quarter = (10000 units x 0.2 x 1.75) + $86000 = $89,500
3rd Quarter = (13000 units x 0.2 x 1.75) + $86000 = $90,550
4th Quarter = (14000 units x 0.2 x 1.75) + $86000 = $90,900
Total Manufacturing overhead cost for the fiscal year = 90200 + 89500 + 90550 + 90900 = $361150
3. Cash disbursements : Total manufacturing overhead cost - non cash depreciation
1st Quarter = $90,200 - $23000 = $67200
2nd Quarter = $89,500 - $23000 = $66500
3rd Quarter = $90,550 - $23000 = $67550
4th Quarter = $90,900 - $23000 = $67900
Total Cash disbursements for the fiscal year = 67200 + 66500 + 67550 + 67900 = $269150
OR
Total manufacturing overhead costs x (4 x 23000) = $361150 - $92000
