Purchase Solution

Direct Labor Budget

Not what you're looking for?

Ask Custom Question

Exercise 9-4 Direct Labor Budget [LO5]
The Production Department of the Riverside Plant of Junnen Corporation has submitted the following forecast of units to be produced at the plant for each quarter of the upcoming fiscal year. The plant produces high-end outdoor barbecue grills.

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 5,000 4,400 4,500 4,900
________________________________________
Each unit requires 0.40 direct labor-hours and direct labor-hour workers are paid $11 per hour.

Requirement 1:
Compute the company's direct labor cost for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Omit the "$" sign in your response.)

Total direct
labor cost
1st Quarter $

2nd Quarter $

3rd Quarter $

4th Quarter $

Year $

________________________________________

Requirement 2:
Compute the company's direct labor cost 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 1,800 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 1,800 hours anyway. Any hours worked in excess of 1,800 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. (Omit the "$" sign in your response.)

Total direct
labor cost
1st Quarter $

2nd Quarter $

3rd Quarter $

4th Quarter $

Year $

________________________________________

Hint 1

________________________________________

Attachments
Purchase this Solution
Solution Summary

Response provides the steps to compute the Direct Labor Budget

Solution Preview

Exercise 9-4 Direct Labor Budget [LO5]
The Production Department of the Riverside Plant of Junnen Corporation has submitted the following forecast of units to be produced at the plant for each quarter of the upcoming fiscal year. The plant produces high-end outdoor barbecue grills.

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 5,000 4,400 4,500 4,900
________________________________________
Each unit requires 0.40 direct labor-hours and direct labor-hour workers are paid $11 per hour.

Requirement 1:
Compute the company's direct labor cost for the upcoming fiscal year, assuming that the direct labor ...

Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Operations Management

This quiz tests a student's knowledge about Operations Management

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

View More Free Quizzes
Related BrainMass Solutions

  • Construct the direct labor budget for Dwayne Corporation

    Required: Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor hours needed each month A direct labor budget shows the amount of direct labor needed in

  • Master versus Flexible Budget, Saldahna Sports

    Variable support rate variance=Actual-Budget Actual=$131,840/40,000 balls=$3.296 per ball Budget=$15 per direct labor hour*0.2 direct labor hours per ball=$3 per ball Variance= $0.296 per ball i.

  • Samano Industries and Pacer, Inc.

    Pacer, Inc, is preparing its direct labor budget for 2005 from the following production budget based on a calendar year.

  • Budgeting

    Direct manufacturing purchases budget (in quantities) terial purchases budget (in quantities) 3. Direct material purchases budget (in dollars) 4. Direct manufacuring labor budget (in dollars) 5.

  • Manufacturing overhead flexible budget

    Variable -per direct labor hour: Indirect labor $0.43, Indirect materials $0, 49, Factory utilities $0.32, and factory repairs $0.24. Fixed: same as budget.

  • Cost Accounting, Flexible Budget, Static Budget & Variances

    Connor Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing ( distribution) labor per attaché case are $ 40, $ 8, and $ 12, respectively.

  • Flexible Budget

    199191 Basic Flexible Budget: Recalculate the static budget to assess results for the manager The budgeted prices for materials and direct labor per unit of finished product are $11 and $55, respectively.

  • Flexible budget and report

    budget was prepared on the expectation that 480,000 direct labor hours will be worked during the year.

  • Define numerous department budgets

    Direct labor budget is the total expected direct labor cost for the budget period is the goal of the direct labor budget.

  • Managerial Account/Cost Accounting

    Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor work force is not adjusted each quarter. Instead, assume that the company's direct labor work force is not adjusted each quarter.

View More Related Solutions