he Production Department of Hruska 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 10,800 9,800 11,800 12,800 Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour. In addition, the variable manufacturing overhead rate is $1.90 per direct labor-hour. The fixed manufacturing overhead is $88,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $28,000 per quarter. Required: 1. Calculate the company’s total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a whole. 2&3. Calculate the company’s total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.
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.
Exercise 8-15 (Algo) Direct Labor and Manufacturing Overhead Budgets [LO8-5, LO8-6]
The Production Department of Hruska Corporation has submitted the following
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
|---|---|---|---|---|
| Units to be produced | 10,800 | 9,800 | 11,800 | 12,800 |
Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour.
In addition, the variable manufacturing overhead rate is $1.90 per direct labor-hour. The fixed manufacturing overhead is $88,000 per quarter. The only noncash element of manufacturing overhead is
Required:
1. Calculate the company’s total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a whole.
2&3. Calculate the company’s total estimated
![Exercise 8-15 (Algo) Direct Labor and Manufacturing Overhead Budgets [LO8-5, LO8-6]
The Production Department of Hruska 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
10,800
9,800
11,800
12,800
Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour.
In addition, the variable manufacturing overhead rate is $1.90 per direct labor-hour. The fixed manufacturing overhead is $88,000 per
quarter. The only noncash element of manufacturing overhead is depreciation, which is $28,000 per quarter.
Required:
1. Calculate the company's total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a
whole.
2&3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead
for each quarter of the upcoming fiscal year and for the year as a whole.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 and 3
Calculate the company's total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a
whole. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.)
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Total direct labor cost
Reg 1
Reg 2 and 3
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