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:

Each unit requires 0.25 direct labor-hours and direct laborers are paid $12.00 per hour.

In addition, the variable manufacturing overhead rate is $2.00 per direct labor-hour. The fixed manufacturing overhead is $89,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $29,000 per quarter.

Required:

1. Calculate the company’s total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced.

2&3. Calculate the company’s total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the the upcoming fiscal year and for the year as a whole.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Q1 Q2 Q3 Q4 Total Units to be produced                 10,900.00              9,900.00            11,900.00            12,900.00            45,600.00 Hours per unit                            0.25                      0.25                      0.25                      0.25                      0.25 total hours required                   2,725.00              2,475.00              2,975.00              3,225.00            11,400.00 Direct labour rate per hour                         12.00                    12.00                    12.00                    12.00                    12.00 Total Direct labour cost                 32,700.00            29,700.00            35,700.00            38,700.00         136,800.00 2 & 3 total hours required                   2,725.00              2,475.00              2,975.00              3,225.00            11,400.00 variable manufacturing overhead rate per hour                            2.00                      2.00                      2.00                      2.00                      2.00 Total Variable manufacturing overhead                   5,450.00              4,950.00              5,950.00              6,450.00            22,800.00 fixed manufacturing overhead                 89,000.00            89,000.00            89,000.00            89,000.00         356,000.00 total manufacturing overhead= Var + Fixed                 94,450.00            93,950.00            94,950.00            95,450.00         378,800.00 Less Depreciation                 29,000.00            29,000.00            29,000.00            29,000.00         116,000.00 Cash disbursements                 65,450.00            64,950.00            65,950.00            66,450.00         262,800.00

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