The production manager of Rordan Corporation has submitted the following quarter

Question

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 9,600 7,500 7,800 10,100 Each unit requires 0.65 direct labor-hours, and direct laborers are paid $10.00 per hour. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Rordan Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterYear Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 6,000 hours of work each quarter. If the number of required direct labor-hours is less tharn this number, the workers are paid for 6,000 hours anyway. Any hours worked in excess of 6,000 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Show lessA Rordan Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Direct labor time per unit (hours) Total direct labor-hours needed Regular hours Overtime hours Wages for regular hours Overtime wages Total direct labor cost

Explanation / Answer

a) Direct labour budget :

b) Direct labour budget :

1st quarter 2nd quarter 3rd quarter 4th quarter year Unit produced 9600 7500 7800 10100 35000 Direct labour time per unit 0.65 0.65 0.65 0.65 0.65 Total direct labour hour needed 6240 4875 5070 6565 22750 Rate per hour 10 10 10 10 10 Direct labour cost 62400 48750 50700 65650 227500

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