value 10.00 points The production manager of Rordan Corporation has submited the
ID: 2571655 • Letter: V
Question
value 10.00 points The production manager of Rordan Corporation has submited the following forecast of units to be produced by quarter for the upcoming fiscal year st Quarter 2nd Quarter 3rd Quarter 4th Quarter 10,400 Units to be produced 0,200 7,500 8,100 Each unit requires 0.45 direct labor-hours, and direct laborers are paid $14 per hour. Required: 1. Complete 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.) Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Required production in units Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost 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 4,500 hours of work each quarter, If the number of required direct labor-hours is less than this number, the workers are paid for 4,500 hours anyway. Any hours worked in excess of 4,500 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.) MG 0124.ipg esc 280 F3 F4 FSExplanation / Answer
1 Rordan corporation Particulars 1 st quarter 2nd quarter 3rd quarter 4th quarter Year a Required production units 10200 7500 8100 10400 36200 b Direct labout time per unit (Hours) 0.45 0.45 0.45 0.45 0.45 c Total direct labour hours needed (a*b) 4590 3375 3645 4680 16290 d Direct labour cost per hour 14 14 14 14 14 e Total direct labor cost (c*d) 64260 47250 51030 65520 228060 2 Rordan corporation Particulars 1 st quarter 2nd quarter 3rd quarter 4th quarter Year a Required production units 10200 7500 8100 10400 36200 b Direct labout time per unit (Hours) 0.45 0.45 0.45 0.45 0.45 c Total direct labour hours needed (a*b) 4590 3375 3645 4680 16290 d Regular hours paid 4500 4500 4500 4500 18000 e Over time hours (c-d or 0 whichever is higher) 90 0 0 180 270 f Wages for regular hours (d*14) 63000 63000 63000 63000 252000 g Over time wages (e*14*1.5 times) 1890 0 0 3780 5670 h Total direct labor cost (f+h) 64890 63000 63000 66780 257670 Please hit the like button if the answer helped you else leave a comment for further clarification. Thank you! All the best!
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