Question

Exercise 10-8

Golden Industrial has estimated that production for the next five quarters will be:

Production Information
1st quarter, 2017		50,000 units
2nd quarter, 2017		45,000 units
3rd quarter, 2017		54,000 units
4th quarter, 2017		44,000 units
1st quarter, 2018		52,000 units

Prepare quarterly direct labor budgets for Golden Industrial for 2017. It takes 1 hour of direct labor to produce each finished unit of product. Direct labor costs are $20 per hour. Each employee can work 490 hours per quarter. (Round answers to 0 decimal places, e.g. 125.)

Golden Industrial Direct Labor Budget For the Year Ending December 31, 2017
		Quarter 1		Quarter 2		Quarter 3		Quarter 4		Year
Total hoursLabor costApproximate number of employees neededAverage hours per quarterUnits to be producedLabor hours per unitLabor rate per hourLabor cost per unit
Labor rate per hourLabor hours per unitLabor cost per unitLabor costTotal hoursApproximate number of employees neededUnits to be producedAverage hours per quarter		$		$		$		$		$
Labor cost per unitUnits to be producedLabor costLabor hours per unitTotal hoursApproximate number of employees neededAverage hours per quarterLabor rate per hour		$		$		$		$		$
Approximate number of employees neededLabor cost per unitAverage hours per quarterLabor hours per unitLabor rate per hourUnits to be producedLabor costTotal hours
Labor rate per hourLabor hours per unitLabor costUnits to be producedTotal hoursAverage hours per quarterApproximate number of employees neededLabor cost per unit		$		$		$		$		$
Labor cost per unitTotal hoursApproximate number of employees neededAverage hours per quarterLabor rate per hourLabor hours per unitUnits to be producedLabor cost
Average hours per quarterApproximate number of employees neededLabor cost per unitTotal hoursLabor hours per unitLabor rate per hourUnits to be producedLabor cost
Labor cost per unitAverage hours per quarterApproximate number of employees neededUnits to be producedLabor hours per unitLabor costLabor rate per hourTotal hours

Answer 1

Direct labor hours required = Units produced * direct labor hours required per unit

Avereage number of employees required = Total hours required / Number of hours that an employee can work

Labor cost per unit = Hours required per unit * Labor cost per hour.

Please go through the following attachment for solution.