Reference no: EM13115478
The Production Department of the Riverside Plant of Junnen Corporation has submitted the following forecast of units to be produced at the plant for each quarter of the upcoming fiscal year. The plant produces high-end outdoor barbecue grills.
1st QTR 2nd QTR 3rd QTR 4th QTR
Units to be produced: 5,000 4,400 4,500 4,900
Each unit requies 0.40 direct labor-hours and direct labor-hour workers are paid $11 per hour.
Construct 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.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted to each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 1,800 hours of work each quarter. If the number of required direct labor hours is less than the number of workers are paid for 1,800 hours anyway. ANy hours worked in excess of 1,800 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.
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