Please do not provide handwritten answer thanku EXERCISE 8-15 Direct Labor and Manufacturing Overhead Budgets LO8-5, LO8-6The Production Department of Hruska Corporation has submitted the following forecast of units to beproduced by quarter for the upcoming fiscal year:Units to be produced1st Quarter12,0002nd Quarter 3rd Quarter10,00013,0004th Quarter14,000Each 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 manu-facturing overhead is $86,000 per quarter. The only noncash element of manufacturing overhead is depre-ciation, which is $23,000 per quarter.Required:1. Calculate the company's total estimated direct labor cost for each quarter of the the upcoming fiscalyear and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter toMaster Budgetingmatch the number of hours required to produce the estimated number of units produced (Hint: Referto Schedule 4 for guidance).2.Calculate the company's total estimated manufacturing overhead cost for each quarter of the upcomingfiscal year and for the year as a whole (Hint: Refer to Schedule 5 for guidance).3.Calculate the company's cash disbursements for manufacturing overhead for each quarter of the theupcoming fiscal year and for the year as a whole (Hint: Refer to Schedule 5 for guidance).373

Budgeting is a tactical planning made by business to spend its money efficiently. A business need to…

Answered: Required: 1. Calculate the company's…

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter21: Budgeting

Section: Chapter Questions

Problem 21.2APR: Sales, production, direct materials purchases, and direct labor cost budgets The budget director of...

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Sales, production, direct materials purchases, and direct labor cost budgets The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows: A. Estimated sales for July by sales territory: Maine: Backyard Chef............................. 310 units at 700 per unit Master Chef............................... 150 units at 1,200 per unit Vermont: Backyard Chef............................. 240 units at 750 per unit Master Chef............................... 110 units at 1,300 per unit New Hampshire: Backyard Chef............................. 360 units at 750 per unit Master Chef............................... 180 units at 1,400 per unit B. Estimated inventories at July 1: Direct materials: Finished products: Grates..................... 290 units Backyard Chef........ 30 units Stainless steel.............. 1,500 lbs. Master Chef........... 42 units Burner subassemblies...... 170 units Shelves.................... 340 units C. Desired inventories at July 31: Direct materials: Finished products: Grates......................... 340 units Backyard Chef........ 40 units Stainless steel.................. 1,800 lbs. Master Chef........... 20 units Burner subassemblies.......... 155 units Shelves........................ 315 units D. Desired materials used in production In manufacture of Backyard Chef: Grates........................................ 3 units per unit of product Stainless steel................................. 24 lbs. per unit of product Burner subassemblies......................... 2 units per unit of product Shelves....................................... 4 units per unit of product In manufacture of Master Chef: Grates........................................ 6 units per unit of product Stainless steel................................. 42 lbs. per unit of product Burner subassemblies......................... 4 units per unit of product Shelves....................................... 5 units per unit of product E. Anticipated purchase price for direct materials: Grates................. 15 per unit Stainless steel.......... 6 per lb. Burner subassemblies...... 110 per unit Shelves.................... 10 per unit F. Desired labor requirements: Backyard Chef: Stamping Department...................... 0.50 hr. at 17 per hr. Forming Department....................... 0.60 hr. at 15 per hr. Assembly Department...................... 1.00 hr. at 14 per hr. Master Chef: Stamping Department...................... 0.60 hr. at 17 per hr. Forming Department....................... 0.80 hr. at 15 pr hr. Assembly Department...................... 1.50 hrs. at 14 per hr. Instructions 1. Prepare a sales budget for July. 2. Prepare a production budget for July. 3. Prepare a direct materials purchases budget for July. 4. Prepare a direct labor cost budget for July.

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