Question 5-32 - Part D

Sandoval Furniture builds high-end hand-made dining tables. Mackenzie Sandoval, the companys owner, has developed the following sales forecast for 2015.

Because of the time needed to create each table, Sandoval maintains an ending Finished Goods Inventory of 20 percent of the following quarters budgeted sales. Sandoval has been following this inventory policy for several years. The company ended 2014 with 514 tables on hand. The standard cost card for a table is as follows:

Part D -

Assume that because of the skill level required to make the tables, Sandoval cannot easily hire additional workers to handle peaks in demand. Consequently, the company maintains a steady workforce of 60 employees and guarantees each worker 414 hours per quarter. For any additional time required to complete the scheduled production, these same workers earn 1.5 times their normal hourly rate. Prepare Sandovals direct labor budget for 2015. (Round answers to 0 decimal places, e.g. 5,275. Round overtime rate to 1 decimal place, e.g. 15.3.)

Please use these categories:

Forecasted sales (tables) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2,721 2,925 1,697 2,568