Costing Irene Corporation manufactures three lines of decorative cabinets forstereo and television sets. Skill is required of the workers and it is not easy tohire persons qualified for the work. At the present time, there are 15 qualifiedemployees (all regular workers) available for this type of work and newpersonnel are to be hired and trained for the busy first six months of 2021. Eachemployee works approximately 150 hours a month and is paid the rate of P100per hour.Production plans based on anticipated sales demand, are given next pagein units for each of the three lines of cabinets.GeorgianFrenchFlorentineProvincialJanuary30020050FebruaryMarch4503208052043080AprilМy520450100640560130June950600150The direct labor time required for one person to produce each unit ofproduct bas been estimated as follows:GeorgianFrench Provincial3 hours5 hours6 hoursFlorentineREQUIRED:1. Prepare a budget of direct labor hours for each month and convert it into abudget of direct labor cost.2. How many employees will be needed for production each month? How manywill be regular, temporary full-time, and temporary part-time. How manynew recruits are needed also cvery month?Irene CorporationDirect Labor Hours & Cost BudgetFor the First Six Months of 2021FrenchProvincial(5) Florentine(6) Georgian(3)Units Hours Units Hours Units Hours Hours CostsTotalTotalJanuaryFebruaryMarchAprilМayJune Irene CorporatiomBudgeted Number of EmploycesFor the First Six Months of 2021TotalTotalNewRegular(15)ТетрояагуPull-timeTemporaryPart-timeHoursEmployeesRecruitsJanuaryFebruaryMarchAprilMayJune

Part (1) Direct labor Hours and Cost Budgets (For First six months of 2021) French…

Irene Corporation manufactures three lines of decorative cabinets for stereo and television sets. Skill is required of the workers and it is not easy to hire persons qualified for the work. At the present time, there are 15 qualified employees (all regular workers) available for this type of work and new personnel are to be hired and trained for the busy first six months of 2021. Each employee works approximately 150 hours a month and is paid the rate of P100 per hour. Production plans based on anticipated sales demand, are given next page in units for each of the three lines of cabinets. Georgian French Florentine Provincial January 300 200 50 February March 450 320 80 520 430 80 April May 520 450 100 640 560 130 June 950 600 150 The direct labor time required for one person to produce each unit of product has been estimated as follows: Georgian French Provincial 3 hours 5 hours 6 hours Florentine REQUIRED: 1. Prepare a budget of direct labor hours for each month and convert it into a budget of direct labor cost. 2. How many employees will be needed for production each month? How many will be regular, temporary full-time, and temporary part-time. How many new recruits are needed also cvery month?

Irene Corporation manufactures three lines of decorative cabinets for stereo and television sets. Skill is required of the workers and it is not easy to hire persons qualified for the work. At the present time, there are 15 qualified employees (all regular workers) available for this type of work and new personnel are to be hired and trained for the busy first six months of 2021. Each employee works approximately 150 hours a month and is paid the rate of P100 per hour. Production plans based on anticipated sales demand, are given next page in units for each of the three lines of cabinets. Georgian French Florentine Provincial January 300 200 50 February March 450 320 80 520 430 80 April May 520 450 100 640 560 130 June 950 600 150 The direct labor time required for one person to produce each unit of product has been estimated as follows: Georgian French Provincial 3 hours 5 hours 6 hours Florentine REQUIRED: 1. Prepare a budget of direct labor hours for each month and convert it into a budget of direct labor cost. 2. How many employees will be needed for production each month? How many will be regular, temporary full-time, and temporary part-time. How many new recruits are needed also cvery month?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 2EB: Salley is developing material and labor standards for her company. She finds that it costs $0.55 per...

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