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 2nd Quarter 3rd Quarter 10,700 9,700 11,700 Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour. In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed manufacturing overhead is $87,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $27,000 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 produce the forecasted number of units produced. (Round "Direct labor time per unit (hours)" and "Direct labor cost per hour" answers to 2 decimal places.) Required production in units Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead 4th Quarter 12,700 2. Prepare the company's manufacturing overhead budget. Less depreciation Cash disbursements for manufacturing overhead Hruska Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Hruska Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Year
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 2nd Quarter 3rd Quarter 10,700 9,700 11,700 Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour. In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed manufacturing overhead is $87,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $27,000 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 produce the forecasted number of units produced. (Round "Direct labor time per unit (hours)" and "Direct labor cost per hour" answers to 2 decimal places.) Required production in units Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead 4th Quarter 12,700 2. Prepare the company's manufacturing overhead budget. Less depreciation Cash disbursements for manufacturing overhead Hruska Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Hruska Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 2nd Quarter 3rd Quarter 4th Quarter
10,700
9,700
11,700
12,700
Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour.
In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed
manufacturing overhead is $87,000 per quarter. The only noncash element of manufacturing overhead is
depreciation, which is $27,000 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 produce the forecasted
number of units produced. (Round "Direct labor time per unit (hours)" and "Direct labor cost per
hour" answers to 2 decimal places.)
Required production in units
Direct labor time per unit (hours)
Total direct labor-hours needed
Direct labor cost per hour
Total direct labor cost
Hruska Corporation
Direct Labor Budget
1st Quarter 2nd Quarter 3rd Quarter
2. Prepare the company's manufacturing overhead budget.
Variable manufacturing overhead
Fixed manufacturing overhead
Total manufacturing overhead
Less depreciation
Cash disbursements for manufacturing
overhead
4th Quarter
Hruska Corporation
Manufacturing Overhead Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Year
Year
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