Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year. Budgeted unit sales First Quarter 24,000 At the end of the previous quarter there were 2,200 units in finished goods inventory. The desired ending finished goods inventory at the end of each quarter is 10% of the next quarter's budgeted sales. Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year. Each light requires 0.75 direct labour-hours for assembly and employees are paid $21 per hour. Units to be produced Direct labour time per unit (hours) Total direct labour hours needed Second Quarter Fourth Quarter 21,500 20,600 21,100 Third Quarter Required: Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units. (Round "Direct labour time per unit" answers to 2 decimal places. Round "Total direct labour hours needed" answers to whole number.) Direct labour cost per hour Total direct labour cost FORTIN LIMITED Direct Labour Budget Second Quarter First Quarter Third Quarter Fourth Quarter Year
Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year. Budgeted unit sales First Quarter 24,000 At the end of the previous quarter there were 2,200 units in finished goods inventory. The desired ending finished goods inventory at the end of each quarter is 10% of the next quarter's budgeted sales. Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year. Each light requires 0.75 direct labour-hours for assembly and employees are paid $21 per hour. Units to be produced Direct labour time per unit (hours) Total direct labour hours needed Second Quarter Fourth Quarter 21,500 20,600 21,100 Third Quarter Required: Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units. (Round "Direct labour time per unit" answers to 2 decimal places. Round "Total direct labour hours needed" answers to whole number.) Direct labour cost per hour Total direct labour cost FORTIN LIMITED Direct Labour Budget Second Quarter First Quarter Third Quarter Fourth Quarter Year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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can someone help me with everything like explanation , computation , formulation with steps please answer in text not image thanks
Transcribed Image Text:Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited
has developed the following estimates for unit sales in the upcoming year.
Budgeted unit sales
First
Quarter
24,000
At the end of the previous quarter there were 2,200 units in finished goods inventory. The desired ending finished goods inventory at
the end of each quarter is 10% of the next quarter's budgeted sales. Management expects sales in the fourth quarter of the upcoming
year to be the same as the first quarter of the following year. Each light requires 0.75 direct labour-hours for assembly and employees
are paid $21 per hour.
Units to be produced
Direct labour time per unit (hours)
Total direct labour hours needed
Second
Quarter
Third
Quarter
Fourth
Quarter
21,500 20,600 21,100
Required:
Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each
quarter to match the number of hours required to produce the forecast number of units. (Round "Direct labour time per unit" answers
to 2 decimal places. Round "Total direct labour hours needed" answers to whole number.)
Direct labour cost per hour
Total direct labour cost
FORTIN LIMITED
Direct Labour Budget
First Quarter
Second Quarter Third Quarter Fourth Quarter
Year
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