MANAGERIAL ACCT-CONNECT W/PROCTORIO.ONLY
17th Edition
ISBN: 9781265572297
Author: Garrison
Publisher: MCG
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Chapter 8, Problem 4E
To determine
Concept introduction:
Direct labor cost: The direct labor cost costs refer to the total cost incurred by the company for paying the wages and other benefits to the company’s employees against the work performed by them. Direct labor cost includes the cost of regular working hours as well as the overtime hours worked.
To prepare: The company’s direct labor budget for the upcoming fiscal year.
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EXERCISE 8-4 Direct Labor Budget
The production manager of Rordan Corporation has submitted the following quarterly production
forecast for the upcoming fiscal year:
Units to be produced ...
1st Quarter
8,000
2nd Quarter 3rd Quarter 4th Quarter
7,000
6,500
7,500
Each unit requires 0.35 direct labor-hours, and direct laborers are paid $15.00 per hour.
Required:
Using Schedule 4 as your guide, prepare the company's direct labor budget for the upcoming
fiscal year.
Exercise 5 (Manufacturing Overhead Budget)
The direct labor budget of Kiko Corporation for the upcoming fiscal year
contains the following details concerning budgeted direct labor-hours.
1st quarter 2nd quarter 3rd quarter 4th quarter
Budgeted direct labor
hour.. .
5,000
4,800
5,200
5,400
The company's variable manufacturing overhead rate is P1.75 per direct labor-
hour and the company's fixed manufacturing overhead is P35,000 per quarter.
The only noncash item included in the fixed manufacturing overhead is
depreciation, which is P15,000 per quarter.
Required:
1. Construct the company's manufacturing overhead budget forthe
upcoming fiscalYear.
2. Compute the company's manufacturing overhead rate (including both
variable and fixed manufacturing overhead) for the upcoming fiscalyear.
Round off to the nearest wholecentavos.
EXERCISE 8-4 Direct Labor Budget LO8-5
The production manager of Rordan Corporation prepared the following quarterly
production forecast for next year:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced
8,000
6,500
7,000
7,500
Each unit requires 0.35 direct labor-hour, and direct laborers are paid $15.00 per
hour.
Required:
Using Schedule 4 as your guide, prepare a direct labor budget for next year.
Chapter 8 Solutions
MANAGERIAL ACCT-CONNECT W/PROCTORIO.ONLY
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - 8-4 What is a master budget? Briefly describe its...Ch. 8 - 8—5 Why is the sales forecast the starting point...Ch. 8 - Prob. 6QCh. 8 - 8-7 Why is it a good idea to create a ‘"Budgeting...Ch. 8 - 8-8 What is a self-imposed budget? What are the...Ch. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 -
The Excel worksheet form that appears below is to...Ch. 8 - Prob. 2AECh. 8 - Prob. 1F15Ch. 8 - Prob. 2F15Ch. 8 - Prob. 3F15Ch. 8 - Prob. 4F15Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Prob. 11F15Ch. 8 - Prob. 12F15Ch. 8 - Prob. 13F15Ch. 8 - Prob. 14F15Ch. 8 - Prob. 15F15Ch. 8 - EXERCISE 8-1 Schedule of Expected Cash Collections...Ch. 8 - Prob. 2ECh. 8 - EXERCISE 8-3 Direct Materials Budget LOW Three...Ch. 8 - Prob. 4ECh. 8 -
EXERCISE 8-5 Manufacturing Overhead Budget...Ch. 8 -
...Ch. 8 -
The company's beginning cash balance for the...Ch. 8 - EXERCISE 8-8 Budgeted Income Statement LO8-9 Gig...Ch. 8 - EXERCISE 8-9 Budgeted Balance Sheet LO8-10 The...Ch. 8 -
EXERCISE 8-10 Production and Direct Materials...Ch. 8 - EXERCISE 8-11 Cash Budget Analysis LOB-8 A cash...Ch. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 -
EXERCISE 8-14 Sales and Production Budgets LO8-2,...Ch. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - PROBLEM 8-19 Cash Budget: Income Statement:...Ch. 8 -
PROBLEM 8-20 Cash Budget; Income Statement;...Ch. 8 - Prob. 21PCh. 8 -
PROBLEM 8-22 Evaluating a Company’s Budget...Ch. 8 - PROBLEM 8—23 schedule or Expected cash...Ch. 8 - PROBLEM 8-24 Cash Budget with Supporting Schedules...Ch. 8 - PROBLEM B-25 Cash Budget with Supporting...Ch. 8 - PROBLEM 8-26 Behavioral Aspects of Budgeting:...Ch. 8 - (
$
55,000
$ 55, 000
...Ch. 8 -
PROBLEM 8-28 Cash Budget with Supporting...Ch. 8 - PROBLEM 8-29 Completing a Master Budget LO8-2,...Ch. 8 - PROBLEM 8-30 Integration of the Sales, Production,...Ch. 8 - Prob. 31PCh. 8 -
CASE 8-32 Evaluatinga Company’s Budget Procedures...Ch. 8 - CASE 8-33 Master Budget with Supporting Schedules...
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