EXERCISE 8-15 Direct Labor and Manufacturing Overhead Budgets LO8-5, LO8-6 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 Quarter Units to be produced 12,000 10,000 13,000 14,000 Each unit requires 0.2 direct labor-hours and direct laborers are paid $12.00 per hour. In addition, the variable manufacturing overhead rate is $1.75 per direct labor-hour. The fixed manu- facturing overhead is $86,000 per quarter. The only noncash element of manufacturing overhead is depre- ciation, which is $23,000 per quarter. Required: 1. Calculate the company's total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to Master Budgeting match the number of hours required to produce the estimated number of units produced (Hint: Refer to Schedule 4 for guidance). 2. Calculate the company's total estimated manufacturing overhead cost for each quarter of the upcoming fiscal year and for the year as a whole (Hint: Refer to Schedule 5 for guidance). 3. Calculate the company's cash disbursements for manufacturing overhead for each quarter of the the upcoming fiscal year and for the year as a whole (Hint: Refer to Schedule 5 for guidance). 373