The production department of Regina Partners has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 24,000 Total direct labour-hours needed Total direct labour cost Each unit requires 1.4 direct labour-hours, and direct labour-hour workers are paid $20 per hour. In addition, the variable manufacturing overhead rate is $1.20 per direct labour-hour. The fixed manufacturing overhead is $167,500 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $51,500 per quarter. 2nd 3rd Quarter Quarter 29,000 26,000 Required: 1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. Total manufacturing overhead 4th Quarter 23,000 2. Prepare the company's manufacturing overhead budget. Regina Partners Direct Labour Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Cash disbursements for manufacturing overhead Regina Partners Manufacturing Overhead Budget Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
The production department of Regina Partners has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 24,000 Total direct labour-hours needed Total direct labour cost Each unit requires 1.4 direct labour-hours, and direct labour-hour workers are paid $20 per hour. In addition, the variable manufacturing overhead rate is $1.20 per direct labour-hour. The fixed manufacturing overhead is $167,500 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $51,500 per quarter. 2nd 3rd Quarter Quarter 29,000 26,000 Required: 1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. Total manufacturing overhead 4th Quarter 23,000 2. Prepare the company's manufacturing overhead budget. Regina Partners Direct Labour Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Cash disbursements for manufacturing overhead Regina Partners Manufacturing Overhead Budget Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The production department of Regina Partners has submitted the following forecast of units to be produced by quarter for the
upcoming fiscal year:
Units to be produced
1st
Quarter
24,000
Total direct labour-hours needed
Total direct labour cost
Each unit requires 1.4 direct labour-hours, and direct labour-hour workers are paid $20 per hour.
In addition, the variable manufacturing overhead rate is $1.20 per direct labour-hour. The fixed manufacturing overhead is $167,500
per quarter. The only noncash element of manufacturing overhead is depreciation, which is $51,500 per quarter.
2nd
3rd
Quarter
Quarter
29,000 26,000
Required:
1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each
quarter to match the number of hours required to produce the forecasted number of units produced.
Total manufacturing overhead
4th
Quarter
23,000
2. Prepare the company's manufacturing overhead budget.
Regina Partners
Direct Labour Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Cash disbursements for manufacturing overhead
Regina Partners
Manufacturing Overhead Budget
Year
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Year
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