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Bezzdna [24]
3 years ago
12

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 10,400 9,400 11,400 12,400 Each unit requires 0.25 direct labor-hours and direct laborers are paid $12.00 per hour. In addition, the variable manufacturing overhead rate is $1.70 per direct labor-hour. The fixed manufacturing overhead is $84,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $24,000 per quarter. Required: 1. Calculate the company’s total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. 2&3. Calculate the company’s total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.
Business
1 answer:
Brut [27]3 years ago
5 0

Answer:

$258,530

Explanation:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Years

Units to be produced 10400 9400 11400 12400 43600

labor hour per unit 0.25 0.25 0.25 0.25 0.25

Total hours required 2600 2350 2850 3100 10900

Variable overhead per unit 1.70 1.70 1.70 1.70 1.70

Total variable overhead 4420 3995 4845 5270 18530

Fixed overhead 84000 84000 84000 84000 336000

Total manufacturing overhead 88420 87995 88845 89270 354530

Less: Depreciation 24000 24000 24000 24000 96000

Cash disbursement for manufacturing overhead 64420 63995 64845 65270 258,530

Therefore the company’s total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole will be $258,530

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