FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 10,600 8,000 8,300 10,600
 

 

Each unit requires 0.25 direct labor-hours, and direct laborers are paid $16.00 per hour.

 

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 2,400 hours of work each quarter. If the number of required direct labor-hours is less than
this number, the workers are paid for 2,400 hours anyway. Any hours worked in excess of 2,400 hours in a quarter are paid
at the rate of 1.5 times the normal hourly rate for direct labor. (Round "Direct labor time per unit (hours)" answers to 2
decimal places.)
Show less A
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
Wages for regular hours
Overtime wages
Total direct labor cost
%24
%24
%24
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Transcribed Image Text: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 2,400 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 2,400 hours anyway. Any hours worked in excess of 2,400 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Show less A 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 Wages for regular hours Overtime wages Total direct labor cost %24 %24 %24
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. (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
Direct labor time per unit (hours)
Total direct labor-hours needed
Direct labor cost per hour
Total direct labor cost
expand button
Transcribed Image Text: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. (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 Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost
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