10 Check my work 3 Exercise 815 Direct Labor and Manufacturi

10 Check my work 3 Exercise 8-15 Direct Labor and Manufacturing Overhead Budgets [LO8-5, LO8-6] 10 points 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 Units to be produced 11,700 10,700 12,700 13,700 eBook Print References Each unit requires 0.25 direct labor-hours and direct laborers are paid $15.00 per hour. In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed manufacturing overhead is $97,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $37,000 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. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced 2&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 Complete this question by entering your answers in the tabs below K Prev 3 of 5 I Next>

Solution

1st Quarter 2nd quarter 3rd quarter 4th quarter Total direct labour cost(WN.1)           43,875.00           40,125.00           47,625.00           51,375.00 TOTAL ESTIMATED MANUFACTURING OVERHEAD COST Total manufacturing Overhead(WN.2)         102,265.00         101,815.00         102,715.00         103,165.00 Cash disbursements for manufacturing overhead(WN.3)           65,265.00           64,815.00           65,715.00           66,165.00 Working Notes:- 1)Total direct labour cost units produced(a)           11,700.00           10,700.00           12,700.00           13,700.00 direct labour hours required per unit(b)                      0.25                      0.25                      0.25                      0.25 c)Total direct labour hours(a*b)             2,925.00             2,675.00             3,175.00             3,425.00 d)labour rate per hour                   15.00                   15.00                   15.00                   15.00 e)Total direct labour cost(c*d)           43,875.00           40,125.00           47,625.00           51,375.00 2)Total manufacturing Overhead Variable manufacturing overhead rate per direct labour hour (a)                      1.80                      1.80                      1.80                      1.80 Direct labour hour(computed in above step)(b)             2,925.00             2,675.00             3,175.00             3,425.00 c)Variable manufacturing overhead cost(a*b)             5,265.00             4,815.00             5,715.00             6,165.00 d)Fixed manufacturing overhead(Given)           97,000.00           97,000.00           97,000.00           97,000.00 Total estimated manufacturing overhead cost(c+d)         102,265.00         101,815.00         102,715.00         103,165.00 3)Cash disbursements for manufacturing overhead Total estimated manufacturing overhead cost(as computed above)         102,265.00         101,815.00         102,715.00         103,165.00 Less:Depreciation -        37,000.00 -        37,000.00 -        37,000.00 -        37,000.00 Total Cash disbursements required for manufacturing overhead           65,265.00           64,815.00           65,715.00           66,165.00