Answer:
Instructions are below.
Explanation:
Giving the following information:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 11,500 10,500 12,500 13,500
1) Each unit requires 0.25 direct labor-hours and direct laborers are paid $14.00 per hour.
<u>Direct labor hours:</u>
1Q= 11,500*0.25= 2,875
2Q= 10,500*0.25= 2,625
3Q= 12,500*0.25= 3,125
4Q= 13,500*0.25= 3,375
Total hours= 12,000
<u>Direct labor costs:</u>
1Q= 2,875*14= $40,250
2Q= 2,625*14= $36,750
3Q= 3,125*14= $43,750
4Q= 3,375*14= $47,250
2) The variable manufacturing overhead rate is $1.60 per direct labor-hour.
The fixed manufacturing overhead is $95,000 per quarter.
Depreciation= $35,000
<u>Allocated overhead:</u>
1Q= 2,875*1.6 + 95,000= 99,600
2Q= 2,625*1.6 + 95,000= 99,200
3Q= 3,125*1.6 + 95,000= 100,000
4Q= 3,375*1.6 + 95,000= 100,400
<u>Cash disbursement:</u>
1Q= 99,600 - 35,000= $64,600
2Q= 99,200 - 35,000= $64,200
3Q= 100,000 - 35,000= $65,000
4Q= 100,400 - 35,000= $65,400