Sheffield Company is preparing its direct labor budget for 2022 from the following production budget based on a calendar year: Quarter 1 2 3 4 Units 57,000 27,000 49,000 75,000 Each unit requires 2 hours of direct labor. The union contract provides for a 10% increase in wage rate to $22 per hour on October 1. Prepare a direct labor budget for 2022. First Quarter SHEFFIELD COMPANY Direct Labor Budget Second Quarter Third Quarter Fourth Quarter Total

Sheffield Company is preparing its direct labor budget for 2022 from the following production budget based on a calendar year: Quarter 1 2 3 4 Units 57,000 27,000 49,000 75,000 Each unit requires 2 hours of direct labor. The union contract provides for a 10% increase in wage rate to $22 per hour on October 1. Prepare a direct labor budget for 2022. First Quarter SHEFFIELD COMPANY Direct Labor Budget Second Quarter Third Quarter Fourth Quarter Total

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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Current Attempt in Progress The budget components for Novak Company for the quarter ended June 30 appear below. Novak sells recycling bins for $14 each. Budgeted production for the next three months is: April 24,500 units May 49,000 units June 31,000 units Novak desires to have recycling bins on hand at the end of each month equal to 20 percent of the following month's budgeted sales in units. On March 31, Novak had 3,500 bins on hand. Five pounds of plastic are required for each recycling bin. At the end of each month, Novak desires to have 10 percent of the following month's direct material needed for production on hand. At March 31, Novak had 12.250 pounds of plastic on hand. The direct materials used in production cost $0.60 per pound. Eachrecycling bin produced requires 0.10 hours of direct labor. Compute the budgeted dollar value of the ending direct materials inventory at the end of May. Cost of ending inventory $ eTextbook and Media Save for Later Attempts: 0 of 6 used Submit…
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The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 8,400 6,500 7,200 8,100 Each unit requires 0.65 direct labor-hours, and direct laborers are paid $12.00 per hour. Required: 1. Prepare the company’s direct labor budget for the upcoming fiscal year. Note: Round "Direct labor time per unit (hours)" answers to 2 decimal places.
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