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The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 2nd Quarter 9,900 3rd Quarter 11,900 4th Quarter 12,900 1st Quarter Units to be produced 10,900 Each unit requires 0.25 direct labor-hours and direct laborers are paid $12.00 per hour. In addition, the variable manufacturing overhead rate is $2.00 per direct labor-hour. The fixed manufacturing overhead is $89,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $29,000 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. 2&3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 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. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total direct labor cost < Req 1 Req 2 and 3 > Req 1 Reg 2 and 3 Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the the upcoming fiscal year and for the year as a whole. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total manufacturing overhead Cash disbursements for manufacturing overhead Ren 1

The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 2nd Quarter 9,900 3rd Quarter 11,900 4th Quarter 12,900 1st Quarter Units to be produced 10,900 Each unit requires 0.25 direct labor-hours and direct laborers are paid $12.00 per hour. In addition, the variable manufacturing overhead rate is $2.00 per direct labor-hour. The fixed manufacturing overhead is $89,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $29,000 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. 2&3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 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. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total direct labor cost < Req 1 Req 2 and 3 > Req 1 Reg 2 and 3 Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the the upcoming fiscal year and for the year as a whole. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total manufacturing overhead Cash disbursements for manufacturing overhead Ren 1

FINANCIAL ACCOUNTING
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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**Hruska Corporation Production Forecast and Cost Calculation** **Production Forecast for the Upcoming Fiscal Year:** - **1st Quarter:** 10,900 units - **2nd Quarter:** 9,900 units - **3rd Quarter:** 11,900 units - **4th Quarter:** 12,900 units Each unit requires 0.25 direct labor-hours, with direct laborers paid $12.00 per hour. **Manufacturing Overhead Costs:** - Variable overhead rate: $2.00 per direct labor-hour. - Fixed overhead: $89,000 per quarter. - Noncash element (depreciation): $29,000 per quarter. **Required:** 1. **Calculate Total Estimated Direct Labor Cost:** - For each quarter and the fiscal year as a whole. 2. & 3. **Calculate Total Estimated Manufacturing Overhead:** - For each quarter and the fiscal year. - Include cash disbursements for manufacturing overhead. **Guide to Answering the Questions:** 1. **Direct Labor Cost Calculation:** - Multiply units produced by 0.25 hours/unit. - Multiply results by $12.00/hour. - Fill in the table for each quarter and sum for the year. 2. **Manufacturing Overhead Calculation:** - Calculate total hours (units x 0.25). - Multiply by the variable rate ($2.00 per hour). - Add fixed overhead. - Deduct noncash element (depreciation) to find cash disbursement. **Tables for Calculation:** - **Direct Labor Cost Table:** - Columns for each quarter and year total. - **Manufacturing Overhead Table:** - Separate lines for total overhead and cash disbursement, with columns for each quarter and year total.
Transcribed Image Text:**Hruska Corporation Production Forecast and Cost Calculation** **Production Forecast for the Upcoming Fiscal Year:** - **1st Quarter:** 10,900 units - **2nd Quarter:** 9,900 units - **3rd Quarter:** 11,900 units - **4th Quarter:** 12,900 units Each unit requires 0.25 direct labor-hours, with direct laborers paid $12.00 per hour. **Manufacturing Overhead Costs:** - Variable overhead rate: $2.00 per direct labor-hour. - Fixed overhead: $89,000 per quarter. - Noncash element (depreciation): $29,000 per quarter. **Required:** 1. **Calculate Total Estimated Direct Labor Cost:** - For each quarter and the fiscal year as a whole. 2. & 3. **Calculate Total Estimated Manufacturing Overhead:** - For each quarter and the fiscal year. - Include cash disbursements for manufacturing overhead. **Guide to Answering the Questions:** 1. **Direct Labor Cost Calculation:** - Multiply units produced by 0.25 hours/unit. - Multiply results by $12.00/hour. - Fill in the table for each quarter and sum for the year. 2. **Manufacturing Overhead Calculation:** - Calculate total hours (units x 0.25). - Multiply by the variable rate ($2.00 per hour). - Add fixed overhead. - Deduct noncash element (depreciation) to find cash disbursement. **Tables for Calculation:** - **Direct Labor Cost Table:** - Columns for each quarter and year total. - **Manufacturing Overhead Table:** - Separate lines for total overhead and cash disbursement, with columns for each quarter and year total.
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