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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 QuarterUnits to be produced 10,000 9,000 11,000 12,000
Each unit requires 020 direct labor-hours and direct laborers are paid $12.00 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 $20,000 per quarter.
Required:
Question 1. Calculate the company‘s total estimated direct labor cost for each quarter of the upcoming ?scal year and for the year as a whole.
Question 2. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming ?scal year and for the year as a whole.
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