Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 8, Problem 16E
Direct Materials and Direct Labor Budgets LOB—4, L08—5
The production department of Zan Corporation has submitted the following
In addition, 6,000 grams of raw materials inventor is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is 52,880.
Each unit requires g grams of raw material that costs 51.20 per gram. Management desires to end each quarter with an inventory of raw materials equal to25% of the following quarters production needs. The desired ending inventory for the 4th Quarter is 8,000 grams. Management plans to pay for 60% of rawmaterial purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid S 11.50 perhour.
Required:
1. Calculate the estimated grams of raw material that need to be purchased each quarter and for the year as a whole (Hint: Refer to Schedule 3 for guidance).
2. Calculate the cost of raw material purchases for each quarter and for the year as a whole (Hint: Refer to Schedule 3 for guidance).
3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole (Hint: Refer to Schedule 3 for guidance).
4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter tomatch the number of hours required to produce the estimated number of units produced (Hint: Refer to Schedule 4 for guidance).
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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
9,400
7,000
3rd Quarter 4th Quarter
7,700
10,000
Units to be produced
Each unit requires 0.25 direct labor-hours, and direct laborers are paid $10.00 per hour.
Required:
1. Prepare the company's direct labor budget for the upcoming fiscal year.
Note: Round "Direct labor time per unit (hours)" answers to 2 decimal places.
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year
Units to be produced
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
10,800
8,500
7,100
11,200
Each unit requires 0.25 direct labor-hours, and direct laborers are paid $20.00 per hour
Required:
1. Prepare the company's direct labor budget for the upcoming fiscal year
Note: Round "Direct labor time per unit (hours)" answers to 2 decimal places.
Direct labor time per unit (hours)
Total direct labor-hours needed
Direct labor cost per hour
Total direct labor cost
Rordan Corporation
Direct Labor Budget
2nd Quarter
1st Quarter
3rd Quarter
4th Quarter
Year
Direct Labor and Manufacturing Overhead Budgets
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 0.2 direct labor-hours and direct laborers are paid $12.00 per hour.
In addition, the variable manufacturing overhead rate is $1.75 per direct labor-hour. The fixed manufacturing overhead is $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 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 (Hint: Refer to Schedule 4 for guidance).
2. Calculate the company’s total estimated manufacturing overhead cost for each quarter of the Upcoming fiscal year and for the…
Chapter 8 Solutions
Introduction To Managerial Accounting
Ch. 8 - What is a budget? What is budgetary control?Ch. 8 - Prob. 2QCh. 8 - What is meant by the term responsibility...Ch. 8 - What is a master budget? Briefly describe its...Ch. 8 - Why is the sales forecast the starting point in...Ch. 8 - “As a practical matter, planning and control mean...Ch. 8 - Prob. 7QCh. 8 - What is a self-imposed budget? What are the major...Ch. 8 - How can budgeting assist a company in planning its...Ch. 8 - Prob. 10Q
Ch. 8 - The Excel worksheet form that appears below is to...Ch. 8 - The Excel worksheet form that appears below is to...Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Prob. 2F15Ch. 8 - Prob. 3F15Ch. 8 - Prob. 4F15Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Prob. 6F15Ch. 8 - Prob. 7F15Ch. 8 - Prob. 8F15Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Prob. 11F15Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Schedule of Expected Cash Collections LOB-2 Silver...Ch. 8 - Down Under Products, Ltd., of Australia has...Ch. 8 - Direct Materials Budget LOB-4 Three grams of musk...Ch. 8 - Direct Labor Budget LOB-5 The production manager...Ch. 8 - Manufacturing Overhead Budget L.08—6 The direct...Ch. 8 - Weller Company’s budgeted unit sales for the...Ch. 8 - Cash Budget LOB—8 Garden Depot is a retailer that...Ch. 8 - Gig Harbor is the wholesale distributor of a small...Ch. 8 - The management of Mecca copy, a photocopying...Ch. 8 - Production and Direct Materials Budgets LO8—,...Ch. 8 - Cash Budget Analysis LOB—8 A cash budget, by...Ch. 8 - Prob. 12ECh. 8 - Schedules of Expected Cash Collections and...Ch. 8 - Sales and Production Budgets L08—2, L08—3 The...Ch. 8 - Direct Labor and Manufacturing Overhead Budgets...Ch. 8 - Direct Materials and Direct Labor Budgets LOB—4,...Ch. 8 - Cash Flows; Budgeted Income Statement and Balance...Ch. 8 - Cash Flows; Budgeted Income Statement and Balance...Ch. 8 - Cash Budget: Income Statement: Balance Sheet...Ch. 8 - Cash Budget; Income Statement: Balance Sheet;...Ch. 8 - Schedules of Expected Cash Collections and...Ch. 8 - Evaluating a Company’s Budget Procedures LOB—1...Ch. 8 - Prob. 23PCh. 8 - Cash Budget with Supporting Schedules L08-2,...Ch. 8 - Prob. 25PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Completing a Master Budget LOB—2, LO8—4, LO8—7,...Ch. 8 - Prob. 30PCh. 8 - Completing a Master Budget LOB-2, LOB-4, LOB-7,...
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