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Helen [10]
3 years ago
10

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 10,600 8,500 7,000 11,100 Each unit requires 0.35 direct labor-hours, and direct laborers are paid $20.00 per hour. Required: 1. Prepare the company’s direct labor budget for the upcoming fiscal year.
Business
1 answer:
kow [346]3 years ago
3 0

Answer and Explanation:

The preparation of the direct labor budget is presented below:

Particulars  Quarter 1     Quarter 2      Quarter 3      Quarter 4      Total  

Required

Production   10,600           8,500            7,000           11,100          37,200

Multiply with

Direct labor

hours             0.35              0.35              0.35              0.35

Total

direct labors  3,710           2,975            2,450            3,885         13,020

Multiply with

Direct labor

cost                $20             $20             $20                 $20           $20

Total

direct labor

cost              $74,200      $59,500      $49,000         $77,700   $260,400

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