The Production Department of Hruska Corporation has submitted the following forecast of units to be...
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Accounting
The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Units to be produced
10,600
9,600
11,600
12,600
Each unit requires 0.30 direct labor-hours and direct laborers are paid $12.50 per hour.
In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $86,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $26,000 per quarter.
Required:
1. Calculate the companys total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a whole.
2&3. Calculate the companys total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.
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