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Alona [7]
3 years ago
13

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 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 12,000 10,000 13,000 14,000

Each unit requires 0.2 direct labor-hours and direct laborers are paid $12.00 per hour.

In addition, the variable manufacturing overhead rete is 31.75 per direct labor-hour. The fixed manufacturing overhead is 386,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $23,000 per quarter
Required:
a. 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.
b. Prepare the company's manufacturing overhead budget.
Business
1 answer:
yarga [219]3 years ago
8 0

Answer:

Hruska Corporation

Production Department

a. Direct labor budget:

                                            1st          2nd         3rd           4th        Year

                                        Quarter   Quarter    Quarter    Quarter    Total

Units to be produced      12,000    10,000     13,000    14,000    49,000

Hours required per unit    0.2         0.2            0.2        0.2           0.2

Total hours required       2,400      2,000       2,600    2,800       9,800

Direct labor rate                $12          $12           $12        $12            $12

Total labor cost             $28,800    $24,000   $31,200  $33,600  $117,600

b. Manufacturing overhead budget:

                                            1st          2nd         3rd           4th              Year

                                         Quarter   Quarter    Quarter    Quarter         Total

Total labor hours              2,400      2,000       2,600    2,800          9,800

Variable overhead:

$31.75 per labor hour $76,200  $63,500    $82,550  $83,350      $311,150

Fixed overhead          386,000   386,000    386,000  386,000    1,544,000

Total overhead        $462,000  $449500 $468,550 $469,350 $1,855,150

Explanation:

a) Direct labor budget is the planned expenditure on direct labor for manufacturing or production.  It is the product of the rate of labor (per hour) and the total labor hours.

b) The manufacturing overhead budget comprises the variable overhead and the fixed overhead for manufacturing of goods.  It is important to differentiate the two in order to determine the variable cost of production under the variable costing system.

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Rockeagle Corporation began fiscal Year 2 with the following balances in its inventory accounts.
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Answer:

I solved this manually. please try to follow up with the calculations.

ending inventory balance of

a. Raw material = $31000

b. work in progress = $49000

c. finished goods = $19000

Explanation:

<u>for</u><u> </u><u>raw</u><u> </u><u>material</u><u>:</u><u>-</u>

balance at beginning 30,000 + purchase of 125000 - issue of 124000

= 30000+125000-124000

= 31,000

the ending balance is 31000

<u>for work in progress inventory:-</u>

beginning inventory 45000 + 124000 current cost of issued material + 162000 direct wages + overhead 24000

= 45000+124000+162000+24000

= $355000

we subtract 306000 costs of goods manufactured from this value

= $355000-306000

= 49000 wip ending balance

<u>for</u><u> </u><u>finish</u><u>ed</u><u> </u><u>goods</u><u> </u><u>inven</u><u>tory</u><u>:</u><u>-</u>

begining inventory 14000 + 306000 costs of goods manufactured - 301000 costs of goods sold

= 14000+306000-301000

= $19000

<u>2</u><u>.</u><u> </u><u>schedule</u><u> for</u><u> </u><u>costs</u><u> </u><u>of</u><u> </u><u>goods</u><u> </u><u>manu</u><u>factured</u><u>:</u><u>-</u>

beginning inventory 30000 + purchase 125000 - ending inventory

= 30000+125000-31000

= 124000

124,000+162000 labour cost+24000

<u>total cost of manufacturing = 310000</u>

310000+begining wip of 45,000 - ending inventory of 49000

= 310000+45000-49000

= 306,000 costs of goods manufactured

we add this value to beginning inventory of finished goods-ending inventory

= 306000+14000-19000

= $301000 costs of goods sold

3. income statement:-

revenue of 400000 - 301000 costs of good sold = 99000

99000-36000 selling expenses

= $63000

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You want to start an organic garlic farm. The farm costs $230,000, to be paid in full immediately. Year 1 cash inflow will be $2
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Answer:

13.8%

Explanation:

IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

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Cash flow in year 1 =  $25,000

Cash flow in year 2 =  $25,000 x 1.05 = $26,250

Cash flow in year 3 =  $26,250 × 1.05 = $27,562.50

Cash flow in year 4 = $27,562.50 × 1.05 = $28,940.63

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Irr = 13.84%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

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