Help me answer this question The Production Department of Hruska Corporation has

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The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Each unit requires 0.2 direct labor-hours and direct laborers are paid $12.00 per hour. In addition, the variable manufacturing overhead rate is $1.75 per direct labor-hour. The fixed manufacturing overhead is $86,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $23,000 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)" answers to 2 decimal places.) Prepare the company's manufacturing overhead budget.

Explanation / Answer

Hruska Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3 rd Quarter 4th Quarter Required Production in units 12000 10000 13000 14000 Direct Labor Time per unit 0.2 0.2 0.2 0.2 Total Direct Labor Hours needed 2400 2000 2600 2800 Direct Labor cost per hour 12 12 12 12 Total Direct Labor Cost 28800 24000 31200 33600 Hruska Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3 rd Quarter 4th Quarter Variable Manufacturing Overhead 4200 3500 4550 4900 Fixed Manufacturing Overhead 86000 86000 86000 86000 Total Manufacturing Overhead 90200 89500 90550 90900 Less Depreciation 23000 23000 23000 23000 Cash Disbursements 67200 66500 67550 67900 for manufacturing overhead

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