Business, 17.04.2020 16:42 carterh166

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 8,000 6,500 7,000 7,500
Each unit requires 0.35 direct labor-hours, and direct laborers are paid $12.00 per hour.

Required:

Prepare 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 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.

Rordan Corporation Direct Labor Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Direct labor time per unit (hours)
Total direct labor hours needed
Regular hours
Overtime hours 0 0 0 0 0
Wages for regular hours
Overtime wages
Total direct labor cost
$0 $0 $0 $0 $0

Answers: 2

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The production manager of Rordan Corporation has submitted the following quarterly production foreca...