The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year. 1st Quarter 2nd Quarter 3rd Quarter 11,900 10,900 12,900 4th Quarter 13,900 Units to be produced Each unit requires 0.20 direct labor-hours and direct laborers are paid $15.00 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $99,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $39,000 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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
11,900
10,900
12,900
13,900
Units to be produced
Each unit requires 0.20 direct labor-hours and direct laborers are paid $15.00 per hour.
In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $99,000 per
quarter. The only noncash element of manufacturing overhead is depreciation, which is $39,000 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.
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: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 11,900 10,900 12,900 13,900 Units to be produced Each unit requires 0.20 direct labor-hours and direct laborers are paid $15.00 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $99,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $39,000 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.
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