The Production Department of Hruska Corporation has submitted the following fore
ID: 2344630 • Letter: T
Question
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 17,000 16,000 15,000 16,000
Each unit requires 1 direct labor-hours and direct laborers are paid $12.90 per hour.
In addition, the variable manufacturing overhead rate is $2.3 per direct labor-hour. The fixed manufacturing overhead is $80,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $32,000 per quarter.
Requirement 1:
Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Omit the "$" sign in your response.)
Hruska Corporation
Direct Labor Budget
1st quarter 2nd quarter 3rd quarter 4th quarter Year
Total direct labor-hours needed
Total direct labor cost $ $ $ $ $
Requirement 2:
Prepare the company's manufacturing overhead budget. (Omit the "$" sign in your response.)
Hruska Corporation
Manufacturing Overhead Budget
1st quarter 2nd quarter 3rd quarter 4th quarter Year
Variable manufacturing overhead $ $ $ $ $
Fixed manufacturing overhead
Total manufacturing overhead
Cash disbursements for
manufacturing overhead
$
$
$
$
$
Explanation / Answer
Hrusk Corporation
Direct Labor Budget
1st q
2nd q
3rd q
4th q
year
Total DL-H needed
17000
16000
15000
16000
64000
Total DL cost
219300
206400
193500
206400
825600
Hruska Corporation
Manufacturig OH budget
1st q
2nd q
3rd q
4th q
year
variable MOH
39100
36800
34500
36800
147200
fixed MOH
80000
80000
80000
80000
320000
total MOH
119100
116800
114500
116800
467200
Cash Disbursement
87100
84800
82500
84800
339200
Total DL-H needed is equal to the number of units since one unit requires one direct labor hour.
Total DL cost is the DL-H multiplied by the labor rate of $12.90 per hour.
Variable MOH is the DL-H multiplied by the rate of $2.30
Fixed MOH is 80,000 per quarter.
Total MOH is the sum of variable MOH and fixed MOH
Cash disbursement is total MOH minus the non-cash depreciation per quarter of 32,000
Hrusk Corporation
Direct Labor Budget
1st q
2nd q
3rd q
4th q
year
Total DL-H needed
17000
16000
15000
16000
64000
Total DL cost
219300
206400
193500
206400
825600
Hruska Corporation
Manufacturig OH budget
1st q
2nd q
3rd q
4th q
year
variable MOH
39100
36800
34500
36800
147200
fixed MOH
80000
80000
80000
80000
320000
total MOH
119100
116800
114500
116800
467200
Cash Disbursement
87100
84800
82500
84800
339200
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.