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(Omit the "$" sign in your response.)
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320,000 Total manufacturing overhead 92,600

Exercise 9-14 Direct Labor and Manufacturing Overhead Budgets [LO5, LO6]

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	2nd Quarter	3rd Quarter	4th Quarter
Units to be produced	12,000	14,000	13,000	11,000

Each unit requires 0.70 direct labor-hours, and direct labor-hour workers are paid $10.50 per hour.

In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $80,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $22,000 per quarter.

Requirement 1:

Prepare the company's direct labor budget 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.)

Raredon Corporation Direct Labor Budget
	1st quarter		2nd quarter		3rd quarter		4th quarter		Year
Total direct labor-hours needed		8,400		9,800		9,100		7,700		35,000
Total direct labor cost	$	88,200	$	102,900	$	95,550	$	80,850	$	367,500

Total grade: 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 + 0.0×1/10 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0%

Feedback:

Raredon Corporation Direct Labor Budget
	1st quarter		2nd quarter		3rd quarter		4th quarter		Year
Units to be produced		12,000		14,000		13,000		11,000		50,000
Direct labor time per unit (hours)		×0.70		×0.70		×0.70		×0.70		×0.70
Total direct labor-hours needed		8,400		9,800		9,100		7,700		35,000
Direct labor cost per hour	$	10.50	$	10.50	$	10.50	$	10.50	$	10.50
Total direct labor cost	$	88,200	$	102,900	$	95,550	$	80,850	$	367,500

Your response

Correct response

Requirement 2:

Prepare the company's manufacturing overhead budget. (Omit the "$" sign in your response.)

Raredon Corporation Manufacturing Overhead Budget
	1st quarter		2nd quarter		3rd quarter		4th quarter		Year
Variable manufacturing overhead	$	1 (0%)	$	1 (0%)	$	1 (0%)	$	1 (0%)	$	1 (0%)
Fixed manufacturing overhead		1 (0%)		1 (0%)		1 (0%)		1 (0%)		1 (0%)
Total manufacturing overhead		1 (0%)		1 (0%)		1 (0%)		1 (0%)		1 (0%)
Cash disbursements for manufacturing overhead	$	1 (0%)	$	1 (0%)	$	1 (0%)	$	1 (0%)	$	1 (0%)

Requirement 2:

Prepare the company's manufacturing overhead budget. (Omit the "$" sign in your response.)

Raredon Corporation Manufacturing Overhead Budget
	1st quarter		2nd quarter		3rd quarter		4th quarter		Year
Variable manufacturing overhead	$	12,600	$	14,700	$	13,650	$	11,550	$	52,500
Fixed manufacturing overhead		80,000		80,000		80,000		80,000		320,000
Total manufacturing overhead		92,600		94,700		93,650		91,550		372,500
Cash disbursements for manufacturing overhead	$	70,600	$	72,700	$	71,650	$	69,550	$	284,500

Total grade: 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 + 0.0×1/20 = 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0% + 0%

Feedback:

Raredon Corporation Manufacturing Overhead Budget
	1st quarter			2nd quarter			3rd quarter			4th quarter			Year
Budgeted direct labor-hours			8,400			9,800			9,100			7,700		35,000
Variable overhead rate		$	×1.50		$	×1.50		$	×1.50		$	×1.50	$	×1.50
Variable manufacturing overhead		$	12,600		$	14,700		$	13,650		$	11,550	$	52,500
Fixed manufacturing overhead			80,600			80,000			80,000			80,000		320,000
Total manufacturing overhead			92,600			94,700			93,650			91,550		372,500
Less depreciation			22,000			22,000			22,000			22,000		88,000
Cash disbursements for manufacturing overhead		$	70,600		$	72,700		$	71,650		$	69,550	$	284,500

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