The Production Department of Hruska Corporation has submitte

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 11,300 2nd Quarter 10,300 3rd Quarter 12,300 4th Quarter 13, 300 Units to be produced Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour. In addition, the variable manufacturing overhead rate is $1.60 per direct labor-hour. The fixed manufacturing overhead is $93,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $33,000 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.

Solution

1) calculate direct labour cost :

2&3) Calculate manufacturing overhead and cash disbursement :

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Unit produced	11300	10300	12300	13300	47200
Labour hour per unit	0.25	0.25	0.25	0.25	0.25
Production labour hour	2825	2575	3075	3325	11800
Rate per hour	13	13	13	13	13
Direct labour cost	36725	33475	39975	43225	153400