QUESTION 3 EXERCISE 10-14 Direct Labor and Manufacturing Overhead Budgets [LO4d, L04e] The production department of Raredon Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced...... 1st Quarter 12,000 2. 2nd Quarter 14,000 3rd Quarter 13,000 4th Quarter 11,000 Each unit requires 0.70 direct labor-hours, and direct labor-hour workers are paid $10.50 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $80,000 per quarter. The only noncash element of manufacturing over- head is depreciation, which is $22,000 per quarter. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to pro- duce the forecasted number of units produced. Prepare the company's manufacturing overhead budget.

QUESTION 3 EXERCISE 10-14 Direct Labor and Manufacturing Overhead Budgets [LO4d, L04e] The production department of Raredon Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced...... 1st Quarter 12,000 2. 2nd Quarter 14,000 3rd Quarter 13,000 4th Quarter 11,000 Each unit requires 0.70 direct labor-hours, and direct labor-hour workers are paid $10.50 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $80,000 per quarter. The only noncash element of manufacturing over- head is depreciation, which is $22,000 per quarter. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to pro- duce the forecasted number of units produced. Prepare the company's manufacturing overhead budget.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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please answer part vii viii