Please do not provide handwritten answer thanku EXERCISE 8-15 Direct Labor and Manufacturing Overhead Budgets LO8-5, LO8-6The Production Department of Hruska Corporation has submitted the following forecast of units to beproduced by quarter for the upcoming fiscal year:Units to be produced1st Quarter12,0002nd Quarter 3rd Quarter10,00013,0004th Quarter14,000Each unit requires 0.2 direct labor-hours and direct laborers are paid $12.00 per hour.In addition, the variable manufacturing overhead rate is $1.75 per direct labor-hour. The fixed manu-facturing overhead is $86,000 per quarter. The only noncash element of manufacturing overhead is depre-ciation, which is $23,000 per quarter.Required:1. Calculate the company's total estimated direct labor cost for each quarter of the the upcoming fiscalyear and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter toMaster Budgetingmatch the number of hours required to produce the estimated number of units produced (Hint: Referto Schedule 4 for guidance).2.Calculate the company's total estimated manufacturing overhead cost for each quarter of the upcomingfiscal year and for the year as a whole (Hint: Refer to Schedule 5 for guidance).3.Calculate the company's cash disbursements for manufacturing overhead for each quarter of the theupcoming fiscal year and for the year as a whole (Hint: Refer to Schedule 5 for guidance).373

Budgeting is a tactical planning made by business to spend its money efficiently. A business need to…

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. Assume that the direct labor workforce is adjusted each quarter to Master Budgeting match the number of hours required to produce the estimated number of units produced (Hint: Refer to Schedule 4 for guidance). 2. Calculate the company's total estimated manufacturing overhead cost for each quarter of the upcoming fiscal year and for the year as a whole (Hint: Refer to Schedule 5 for guidance). 3. Calculate the company's cash disbursements for manufacturing overhead for each quarter of the the upcoming fiscal year and for the year as a whole (Hint: Refer to Schedule 5 for guidance). 373

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. Assume that the direct labor workforce is adjusted each quarter to Master Budgeting match the number of hours required to produce the estimated number of units produced (Hint: Refer to Schedule 4 for guidance). 2. Calculate the company's total estimated manufacturing overhead cost for each quarter of the upcoming fiscal year and for the year as a whole (Hint: Refer to Schedule 5 for guidance). 3. Calculate the company's cash disbursements for manufacturing overhead for each quarter of the the upcoming fiscal year and for the year as a whole (Hint: Refer to Schedule 5 for guidance). 373

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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Concept explainers

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

Please do not provide handwritten answer thanku

EXERCISE 8-15 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:
Units to be produced
1st Quarter
12,000
2nd Quarter 3rd Quarter
10,000
13,000
4th Quarter
14,000
Each unit requires 0.2 direct labor-hours and direct laborers are paid $12.00 per hour.
In addition, the variable manufacturing overhead rate is $1.75 per direct labor-hour. The fixed manu-
facturing overhead is $86,000 per quarter. The only noncash element of manufacturing overhead is depre-
ciation, which is $23,000 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. Assume that the direct labor workforce is adjusted each quarter to
Master Budgeting
match the number of hours required to produce the estimated number of units produced (Hint: Refer
to Schedule 4 for guidance).
2.
Calculate the company's total estimated manufacturing overhead cost for each quarter of the upcoming
fiscal year and for the year as a whole (Hint: Refer to Schedule 5 for guidance).
3.
Calculate the company's cash disbursements for manufacturing overhead for each quarter of the the
upcoming fiscal year and for the year as a whole (Hint: Refer to Schedule 5 for guidance).
373

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