Concept explainers
Direct Labor and Manufacturing
The Production Department of Hruska Corporation has submitted the following
Each unit requires 02 direct labor-hours and direct laborers are paid $1200 per hour
In addition, the variable manufacturing overhead rate is $1 .75 per direct labor-hour. The fixed manufacturing overhead is S 86,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $23,000 per quarter.
Required:
1. Calculate the company’s total estimated direct labor cost for each quarter of the upcoming fiscal year and for the ‘ear 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 (Hint: Refer to Schedule 4 for guidance).
2. Calculate the company’s total estimated
3. Calculate the company’s cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole (Hint: Refer to Schedule 5 for guidance).
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Introduction To Managerial Accounting
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- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College