**4.4 Direct Labor Budget for the Next Five Years****Direct Labor Budget Overview**The direct labor budget is essential to determine the number of labor hours required for production. It computes the overall hours needed and the breakdown by labor type.| Years | 2023 | 2024 | 2025 | 2026 | 2027 | Total ||-------|------|------|------|------|------|-------|| **Required production in units** | 4200 | 5200 | 6200 | 7200 | 8200 | 31000 || **Direct labor hours per unit** | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 || **Total direct labor-hours needed** | 1,050 | 1,300 | 1,550 | 1,800 | 2,050 | 7,750 || **Direct labor cost per hour** | $32 | $32 | $32 | $32 | $32 | $32 || **Total Direct Labor Cost** | $33,600 | $41,600 | $49,600 | $57,600 | $65,600 | $248,000 |**Explanation:**- **Required production in units**: The number of units projected for production each year.- **Direct labor hours per unit**: Fixed at 0.25 hours across all years, reflecting the time required to produce each unit.- **Total direct labor-hours needed**: Calculated by multiplying required production by direct labor hours per unit.- **Direct labor cost per hour**: Set at $32 for each year.- **Total Direct Labor Cost**: The overall expenditure on labor, based on the total labor hours and cost per hour.

The direct labor budget is what's used to figure out how many man-hours will be required to produce…

4.4 Prepare a direct labor budget for each of the upcoming five years. Direct Labor Budget To determine how many labor hours will be required to create the items listed in the cost of production, the direct labor budget is used. A more intricate direct labor budget will compute both the overall number of hours required and the breakdown of those hours by labor type. Years Required production in 4200 units Direct labor hours per 0,25 unit Total direct labor- hours needed 2023 Direct labor cost per hour Total Direct Labor Cost 1,050 $32 $33600 2024 5200 0,25 1,300 $32 $41600 2025 6200 0,25 1,550 $32 2026 7200 0,25 1,800 $32 2027 8200 0,25 2,050 $32 $49600 $57600 $65600 Total 31000 0,25 7,750 $32 $248000

4.4 Prepare a direct labor budget for each of the upcoming five years. Direct Labor Budget To determine how many labor hours will be required to create the items listed in the cost of production, the direct labor budget is used. A more intricate direct labor budget will compute both the overall number of hours required and the breakdown of those hours by labor type. Years Required production in 4200 units Direct labor hours per 0,25 unit Total direct labor- hours needed 2023 Direct labor cost per hour Total Direct Labor Cost 1,050 $32 $33600 2024 5200 0,25 1,300 $32 $41600 2025 6200 0,25 1,550 $32 2026 7200 0,25 1,800 $32 2027 8200 0,25 2,050 $32 $49600 $57600 $65600 Total 31000 0,25 7,750 $32 $248000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

4.4 Prepare a direct labor budget for each of the upcoming five years. Labor = $8
Question 1 TinyTom makes one product, which sells for $70 each, and prepares functional budgets on a monthly basis. For the first three months of 2021, the following figures are proposed: Sales January 10,000 units February 14,000 units March 12,000 units 10,000 April A closing stock of 10% of the next month's sales is required, the forecast sales for April is 10,000 units. The standard material cost of one unit of finished product is: Material X 4 units at $2 per unit Material Y 8 units at $3 per unit Material Z 2 unit at $5 per unit The standard direct labour cost of one unit of finished product is: 4 hours at $5 per hour Department A Department B Department C 4 hours at $5 per hour 2 hours at $4 per hour Material X Y Material Opening Stock Closing Stock 75,000 80,000 15,000 60,000 75,000 12,500 Required: 1) Calculate the standard prime cost of one unit of finished product. ii) Calculate the Sales Budget for each of months. iii) Calculate the Production Budget for each of months. iv)…
Pulham Company is preparing its direct labor budget for 2019 from the following production budget based on a calendar year: Quarter 1 2 3 4 Units 60,000 30,000 45,000 75,000 Each unit requires 2 hours of direct labor. The union contract provides for a 10% increase in wage rate to $11 per hour on October 1. Prepare a direct labor budget for 2019. V First Quarter PULHAM COMPANY Direct Labor Budget For the Year Ended December 31, 2019 Second Quarter Third Quarter Fourth Quarter Total
Solve requriement a and b
Ma 1 Prepare a PLANNED BUDGET for the month of December 2022 for your imaginary company assuming any level of activity. Prepare a SUMMARY OF ACTUAL RESULTS for the month of December 2022 for your imaginary company assuming any level of activity different from planned level of activity. That means, if you prepare a planned budget for 1000 units, your actual results should be for more than or less than 1000 units. Prepare a FLEXIBLE BUDGET for the actual level of activity for the month of December 2022 for your imaginary company. Prepare a PERFORMANCE REPORT (by comparing actual results with flexible budget) and shows therein REVENUE AND SPENDING VARIANCES.
Man Hours: Budgeted hours: 40 hours Actual hours used: 44 hours Rate is $28 per hour What is the current and projected budget allotted answer? Project Budget allotted =
1. wHAT IS THE CASH PAYMENTS IN QUARTER 3 2. HOW MUCH IS THE TOTAL MANUFACTURING OVERHEAD BUDGET 2023?
Management Accounting Course Project – Part 1, B Group The Terranova Company is preparing information to complete its master budget for the quarter ending December 31, 2020. The company intends to make unit sales in the related months as follows: September 5,000 October 9,750 November 11,700 December 14,625 Units are to be sold for $10 each. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following the sale. *Required: 1) Prepare a sales budget for Terranova for the quarter ending December 31, 2020. Show activity by month and in total. (Hint: a quarter = 3 months.) 2) Complete a schedule of expected cash collections for the quarter ending December 31, 2020. Show activity by month and in total.
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 9,800 Units to be produced 7,500 7,900 10,200 Each unit requires 0.75 direct labor-hours, and direct laborers are paid $14.00 per hour. Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. 2. 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 7,000 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 7,000 hours anyway. Any hours…
Part B Tamy Sdn Bhd produces wooden desks. The following estimates are provided for the month of May, June, July and August 2021. Budgeted wooden desk sales in units 8,000 7,000 6,000 5,000 May June July August The estimated selling price is RM120 per unit. Tamy Sdn Bhd wants to have 10% of the next month's sales in units on hand at the end of each month. REQUIRED a) Prepare the sales budget for the month of May, June , July and Total 2021. b) Prepare the production budget for the month of May, June, July and Total 2021.
Part #6: H Company’s Direct Labor Budget indicates the number of direct labor hours to be used in July, August, and September are 21,000 and 18,900 and 23,000 respectively. Variable overhead is expected to be $0.90 per direct labor hour. Fixed overhead per month is expected to be $8,200. Prepare an Overhead Budget with columns for July, August, September, and Total 3rd Quarter.
Please do not give solution in image format thanku