The production manager of Rordan Corporation has submitted the following forecas

Question

The production manager of Rordan 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 8,000 6,500 7000 00 Units to be produced Each unit requires 035 direct labor-hours, and direct laborers are paid $12.00 per hour lete 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.) Rordan Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Required production in units Direct labor time per unit (hours) 8,000 0.35 2,800 6,500 29,000 0.35 2,625 10,150 12 29,400 S 31,500 121,800 7,500 0.35 0.35 2,275,4502 0.35 Total direct lbor- hours needed 2 800 2275 2450 2625 10,150 Direct labor cost per hour Total direct labor cost 12 $ $ 33,600 S 27,300 12 S 12 S 12 S 2. Complete 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 2,600 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 2,600 hours anyway. Any hours worked in excess of 2,600 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. (Input all amounts as positive values.) Rordan Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total direct labor-hours needed Regular hours paid Overtime hours paid Wages for regular hours Overtime wages Total direct labor cost

Explanation / Answer

Direct labour budget :

1st quarter 2nd quarter 3rd quarter 4th quarter Year Total direct labour hour needed 2800 2275 2450 2625 10150 Regular hours paid 2600 2600 2600 2600 10400 Overtime hours paid 200 25 225 Wages for regular hours 31200 31200 31200 31200 124800 Overtime wages 3600 450 4050 Total direct labour cost 34800 31200 31200 31650 128850

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