Hruska Corporation's production budget for next year contained the following estimates: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 11,900 10,900 12,900 13,900 Units to be produced Each unit requires 0.20 direct labor-hour and direct laborers are paid $15.00 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $99,000 per quarter. The only noncash element of manufacturing overhead is depreciation of $39,000 per quarter. Required: 1. Calculate the company's total estimated direct labor cost for each quarter and for the year as a whole. 2. and 3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter and for the year as a whole. Complete this question by entering your answers in the tabs below. Required 1 Required 2 and 3 Calculate the company's total estimated direct labor cost for each quarter and for the year as a whole. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total direct labor cost < Required 1 Required 2 and 3 >
Hruska Corporation's production budget for next year contained the following estimates: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 11,900 10,900 12,900 13,900 Units to be produced Each unit requires 0.20 direct labor-hour and direct laborers are paid $15.00 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $99,000 per quarter. The only noncash element of manufacturing overhead is depreciation of $39,000 per quarter. Required: 1. Calculate the company's total estimated direct labor cost for each quarter and for the year as a whole. 2. and 3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter and for the year as a whole. Complete this question by entering your answers in the tabs below. Required 1 Required 2 and 3 Calculate the company's total estimated direct labor cost for each quarter and for the year as a whole. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total direct labor cost < Required 1 Required 2 and 3 >
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.
Question
Answer both/all
Transcribed Image Text:**Hruska Corporation's Production Budget Overview**
Hruska Corporation has prepared a production budget for the upcoming year, featuring the following estimates for units to be produced each quarter:
- **1st Quarter:** 11,900 units
- **2nd Quarter:** 10,900 units
- **3rd Quarter:** 12,900 units
- **4th Quarter:** 13,900 units
**Direct Labor Cost Details:**
- Each unit requires 0.20 direct labor-hour.
- Direct laborers are compensated at a rate of $15.00 per hour.
**Manufacturing Overhead:**
- The variable manufacturing overhead rate is $1.50 per direct labor-hour.
- Fixed manufacturing overhead amounts to $99,000 per quarter.
- Depreciation, the sole noncash element of manufacturing overhead, is $39,000 per quarter.
**Tasks Required:**
1. Calculate the company's total estimated direct labor cost for each quarter and for the year overall.
2. Determine the company’s total estimated manufacturing overhead cost and identify the cash disbursements for manufacturing overhead for each quarter and for the entire year.
**Instructional Note:**
When completing this exercise, ensure that calculations for each quarter take into account the specified units, labor hours per unit, and applicable rates to accurately determine total costs. Remember to differentiate between variable costs, fixed costs, and noncash items like depreciation for comprehensive understanding and financial analysis.
**Interactive Component:**
Responses are to be entered in the provided tabs, with Quarter-specific data contributing to the comprehensive yearly overview.
Transcribed Image Text:Hruska Corporation's production budget for next year includes the following estimates:
| Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter |
|--------------|-------------|-------------|-------------|-------------|
| Units to be produced | 11,900 | 10,900 | 12,900 | 13,900 |
Each unit requires 0.20 direct labor-hour, and direct laborers are paid $15.00 per hour.
In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $99,000 per quarter. The only noncash element of manufacturing overhead is depreciation of $39,000 per quarter.
**Required:**
1. Calculate the company's total estimated direct labor cost for each quarter and for the year as a whole.
2. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter and for the year as a whole.
**Instructions:**
Complete this question by entering your answers in the tabs provided.
**Tasks:**
Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter and for the year as a whole.
| | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year |
|---|-------------|-------------|-------------|-------------|------|
| Total manufacturing overhead | | | | | |
| Cash disbursements for manufacturing overhead | | | | | |
To solve the problems, use the formulas and information provided about direct labor and manufacturing overhead costs. Consider both fixed and variable components, and account for noncash elements as needed.
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