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 10,900 9,900 11,900 12,900 Each unit requires 0.25 direct labor-hours and direct laborers are paid $12.00 per hour. an 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: Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. 2. and 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.
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 10,900 9,900 11,900 12,900 Each unit requires 0.25 direct labor-hours and direct laborers are paid $12.00 per hour. an 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: Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. 2. and 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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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
10,900
9,900
3rd Quarter 4th Quarter
11,900
12,900
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 upcoming fiscal year and for the year as a whole.
2. and 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.
Req 1
Req 2 and 31
Calculate the company's total estimated direct labor cost for each quarter of 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
Total direct labor cost
Year
Transcribed Image Text:Total manufacturing overhead.
Cash disbursements for manufacturing overhead
1st Quarter
< Req 1
2nd Quarter 3rd Quarter
Reg 2 and 3>
4th Quarter
Year
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