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Roehler industrial has estimated that production

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Prepare quarterly direct labor budgets for Roehler Industrial for 2012 using the production information in Exercise 10-8. It takes 2.0 hours of direct labor to produce each finished unit of product. Direct labor costs are $25 per hour. Each employee can work 450 hours per quarter.

In Exercise 10-8, Roehler Industrial has estimated that production for the next five quarters will be:
Production Information

1st Quarter, 2011 .......45,000 units
2nd Quarter, 2011 .......41,000 units
3rd Quarter, 2011 .......49,000 units
4th Quarter, 2011 .......38,000 units
1st Quarter, 2012 .......47,000 units

Finished units of production require six pounds of raw material per unit. The raw material cost is $5 per pound. There are 54,000 pounds of raw material on hand at the beginning of the first quarter, 2012. Roehler desires to have 20 percent of next quarter's material requirements on hand at the end of each quarter.

Reference no: EM13952455

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