Question

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

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 8,800 7,000 7,400 8,300 Each unit requires 0.55 direct labor-hours, and direct laborers are paid $10.00 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 4,500 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 4,500 hours anyway. Any hours worked in excess of 4,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. rev: 03_30_2020_QC_CS-205911

Homework Answers

Answer #1

1) Direct labor budget

1st quarter 2nd quarter 3rd quarter 4th quarter Year
Unit produced 8800 7000 7400 8300 31500
Labor hour per unit 0.55 0.55 0.55 0.55 0.55
Production labor hour 4840 3850 4070 4565 17325
Rate per hour 10 10 10 10 10
Direct labor cost 48400 38500 40700 45650 173250

2) Direct labor budget

1st quarter 2nd quarter 3rd quarter 4th quarter Year
Unit produced 8800 7000 7400 8300 31500
Labor hour per unit 0.55 0.55 0.55 0.55 0.55
Production labor hour 4840 3850 4070 4565 17325
Regular hour 4500 4500 4500 4500 18000
Overtime hour 340 65 405
Wages for regular hour 45000 45000 45000 45000 180000
Wages for overtime hour 5100 975 6075
Direct labor cost 50100 45000 45000 45975 186075
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,200 7,500 8,100 10,400 Each unit requires 0.45 direct labor-hours, and direct laborers are paid $14.00 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 production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 11,000 8,000 8,500 10,800 Each unit requires 0.75 direct labor-hours, and direct laborers are paid $16.00 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 production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 9,600 7,500 7,800 10,100 Each unit requires 0.65 direct labor-hours, and direct laborers are paid $10.00 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 production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 9,600 7,500 7,800 10,100 Each unit requires 0.65 direct labor-hours, and direct laborers are paid $10.00 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 production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 8,200 6,500 7,100 8,000 Each unit requires 0.25 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 production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 9,000 7,000 7,500 8,400 Each unit requires 0.45 direct labor-hours, and direct laborers are paid $10.00 per hour. Required: 1. Prepare the company’s direct labor budget for the upcoming fiscal year. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.)
The production manager of Rordan Corporation has submitted the following forecast of units to be produced...
The production manager of Rordan 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 10,000 7,500 8,000 10,300 Each unit requires 0.55 direct labor-hours, and direct laborers are paid $14.00 per hour. Required: 1. Complete 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...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 11,200 8,500 8,600 10,900 Each unit requires 0.55 direct labor-hours, and direct laborers are paid $16.00 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 production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 8,200 6,500 7,100 8,000 Each unit requires 0.25 direct labor-hours, and direct laborers are paid $12.00 per hour. Required: 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...
Exercise 8-4 Direct Labor Budget [LO8-5] The production manager of Rordan Corporation has submitted the following...
Exercise 8-4 Direct Labor Budget [LO8-5] The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,200 7,500 8,100 10,400 Each unit requires 0.45 direct labor-hours, and direct laborers are paid $14.00 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...