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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	3rd Quarter	4th Quarter
Units to be produced	11,200	8,500	8,600	10,900

Each unit requires 0.55 direct labor-hours, and direct laborers are paid $16.00 per hour.

Required:

1. Prepare the companys direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

2. Prepare the companys direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the companys direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 5,900 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 5,900 hours anyway. Any hours worked in excess of 5,900 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.

Lime per unit (hours) answers to 2 decimal places.) Rordan Corporation Direct Labor Budget 1st 2nd Quarter 3rd Quarter 4th Quarter Year Quarter 200 8,500 8,60010,900 392,000 0.55.50.550.550.55 6,604,675 4,7305,995215,600 Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost 1616 $16 616 $98,56074,80075,680 95,920 3,449,600

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