Answer Happy

The production department of Raredon Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 25,000 2nd Quarter 28,000 3rd Quarter 27,000 4th Quarter 21,000 Units to be produced Each unit requires 1.5 direct labour-hours, and direct labour-hour workers are paid $21 per hour. In addition, the variable manufacturing overhead rate is $1.40 per direct labour-hour. The fixed manufacturing overhead is $168,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $52,000 per quarter. Required: 1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. RAREDON CORPORATION Direct Labour Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total direct labour-hours needed Total direct labour cost 2. Prepare the company's manufacturing overhead budget. RAREDON CORPORATION Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total manufacturing overhead Cash disbursements for manufacturing overhead