The Production Department of Hruska Corporation has submitted the following fore

Question

The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

     In addition, the variable manufacturing overhead rate is $1.40 per direct labor-hour. The fixed manufacturing overhead is $92,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $32,000 per quarter.

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. (Round "Direct labor time per unit (hours)" and "Direct labor cost per hour" answers to 2 decimal places.)

      

     

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The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

In addition, 8,750 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $5,200.

     Each unit requires 5 grams of raw material that costs $1.60 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 6,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $13.50 per hour.

Prepare the company’s direct materials budget for the upcoming fiscal year. (Round "Unit cost of raw materials" answers to 2 decimal places.)

  

Prepare a schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year.

  

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. (Round "Direct labor-hours per unit" and "Direct labor cost per hour" answers to 2 decimal places.)

The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

Explanation / Answer

Answer for Hruska Corporation Part 1 of this Question

Answer for ZEN Corporation Part 2 of this question

1 Direct labor budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter   Units to be produced 11,200 10,200 12,200 13,200 Labor Hours Required ( Hours) 0.25 0.25 0.25 0.25 Total Labours Hours 2800 2550 3050 3300 Labor Rate ($) 13 13 13 13 Total Labor expenses ($) 36400 33150 39650 42900 2 Manufacturing overhead budget. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter   Units to be produced 11,200 10,200 12,200 13,200 Total Labours Hours Required 2800 2550 3050 3300 Variable M.Overhead Rate $ per D.Labour Hour 1.4 1.4 1.4 1.4 Variable M.Overhead Expenses $ 3920 3570 4270 4620 Fixed manufacturing O H ($) 60000 60000 60000 60000 Depreciation ($) 32000 32000 32000 32000 Total Manufacturing Overhead ($) 95920 95570 96270 96620

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