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Andre45 [30]
4 years ago
12

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal y

ear: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 8,000 6,500 7,000 7,500 Each unit requires 0.35 direct labor-hours, and direct laborers are paid $12.00 per hour. Required: 1. Prepare the company’s direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. 2. Prepare 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
2 answers:
Nikitich [7]4 years ago
8 0

Answer:

Explanation:

Rordan Corporation

Direct Labor Budget

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Year

Required production in units:

1st Quarter = 8, 000

2nd Quarter = 6, 500

3rd Quarter = 7, 000

4th Quarter = 7, 500

Year = 29, 000

Direct labor time per unit (hours):

1st Quarter = 0.35

2nd Quarter = 0.35

3rd Quarter = 0.35

4th Quarter = 0.35

Total direct labor hours needed:

1st Quarter = 2, 800

2nd Quarter = 2, 275

3rd Quarter = 2, 450

4th Quarter = 2, 625

Year = 10, 150

Direct labor cost per unit:

1st Quarter = $12

2nd Quarter = $12

3rd Quarter = $12

4th Quarter = $12

Total direct labor cost:

1st Quarter = $12 x 2, 800 = $33, 600

2nd Quarter = $12 x 2, 275 = $27, 300

3rd Quarter = $12 x 2, 450 = $29, 400

4th Quarter = $12 x 2, 625 = $31, 500

Year = Q1 + Q2 + Q3 + Q4 = $121, 800

Talja [164]4 years ago
4 0

Answer:

\left[\begin{array}{ccccc}&Q1&Q2&Q3&Q4\\$Production &8000&6500&7000&7500\\$Direct Labor&2800&2275&2450&2625\\$Base Labor Cost&31200&31200&31200&31200\\$Overtime&3600&&&450\\$Total&34800&31200&31200&31650\\\end{array}\right]

Explanation:

DIRECT LABOR BUDGET

multiply each quarter production by 0.35

Then, we compare this labor against the 2,600 base hours

Q1 and Q4 are above 2,600 so we multiply these hours by a extra 50% overtime to add it to the base cost of 2,600 hours

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